Russian gas giant Novatek is set to create its own shipping company – an arctic shipping company at that.
In a statement on Friday, the company said it was creating a transportation subsidiary named Maritime Arctic Transport.
Novatek, which operates giant gas fields in Russian north, says the new company will help it manage and optimize transportation costs, build up the unique competencies of Arctic navigation, and ensure centralized management of the Arctic fleet.
Novatek’s Chairman of the Management Board Leonid Mikhelson noted: “Novatek’s long-term development strategy envisages a significant growth in LNG production from the Company’s vast hydrocarbon resource base located on the Yamal and Gydan peninsulas in the Arctic zone of more than 55 million tons per annum by 2030.
“Therefore, establishing an efficient Northern Sea Route shipping model is one of our key priorities to realize our long-term strategy.
“Creating our own shipping company fully supports this goal and will optimize transport cost and ensure a well-balanced, centralized management structure to improve the competitiveness of NOVATEK’s Arctic projects.”