The Northern Sea Route cargo traffic is to be increased from 6-9 million tonnes to 80 million tonnes per year including 50 million tonnes of liquefied natural gas (LNG) and condensate, RF Energy Minister Alexander Novak said yesterday, 25 October 2018, when reporting on LNG production and exports at RF Government meeting.
According to the meeting transcript available at the official website of RF Government, the Minister said: “Today, the Northern Sea Route lets reduce the distance covered by energy products on their way from Asia to Europe and goods on their way from Europe to Asia by about 1/3. As of today, the Northern Sea Route transports only 6-9 million tonnes of cargo. We have an ambitious target of reaching an annual traffic of 80 million tonnes including 50 million tonnes of LNG and condensate produced on the Yamal and Gydan peninsulas”.
He emphasized that the development of the Northern Sea Route is not possible without active involvement of Russia’s nuclear-powered fleet and its development. “... a huge order for icebreakers – up to five multipurpose nuclear-powered 60 MW icebreakers and up to three nuclear-powered 120MW icebreakers of Leader class”, said Alexander Novak.
According to the Minister, a programme on promotion of shipbuilding and equipment for shelf development has been prepared by the Ministry of Industry and Trade together with Rosatom in order to develop the NSR scientific and production base. The programme was approved by the Government of the Russian Federation in March 2017. It covers the construction of nuclear-powered icebreakers. Besides, Zvezda shipyard is to be awarded with a contract on construction of Arc7 gas carriers for servicing Arctic LNG 2.
“One more important aspect of LNG production development is the construction of LNG transshipment terminals in Kamchatka and Murmansk. They will ensure maximum use of the Arctic potential for reduction of operation costs with transshipment of LNG from Arc7 ships to non-Arctic gas carriers”, said Alexander Novak.
He reminded that NOVATEK, together with the Ministry of Industry and Trade and the authorities of the Murmansk Region, is going to establish a center for construction of large offshore facilities. “It will manufacture gravity based structures and submersible platforms for production, storage, and shipment of LNG. The center will also be used for construction of different offshore facilities required for development of the Arctic. This center will perform repair and maintenance of facilities and equipment involved in development of offshore oil and gas condensate fields”, said the Minister.