Russian natural gas producer Pao Novatek has signed a memorandum of understanding (MOU) with Japanese firms Marubeni Corporation and Mitsui O.S.K. Lines (MOL) for a liquefied natural gas (LNG) transshipment and marketing project in the Kamchatka region in Russia.

As per the MOU, the partners will jointly carry a feasibility study with an objective to establish the complex in the Russian Far East.

Through the proposed project, the offshore infrastructure to transship LNG cargoes from ice-breaking LNG ships to standard LNG ships will be created.

The LNG, which will be transshipped, will be produced in the LNG projects implemented by Novatek in the Arctic region.

According to MOL and Marubeni, the project will guarantee flexible supply of LNG to the Asia Pacific region including Japan. While MOL is a transport company, Marubeni is a general trading company.

The MOU signed by the parties outlines their intentions and contains a specific action plan to look out for opportunities to build the LNG hub apart from investments associated with it.

Novatek management board chairman Leonid Mikhelson said: “One of the main advantages of creating an LNG transshipment terminal at Kamchatka is its close proximity to consumers and the opportunity to ensure flexible sales terms for the key consuming markets of the Asian-Pacific region.

“The MOU demonstrates a high market interest and relevancy for this type of project to address market needs”.

Recently, Novatek signed a strategic cooperation agreement with the Chinese National Petroleum Company (CNPC) to confirm their plans to cooperate in executing the Arctic LNG 2 project. The agreement will also see the two parties collaborate in various segments of the LNG and natural gas markets, such as LNG trading and gas infrastructure development.

In another development, Novatek is looking to commission its first LNG plant on the Yamal peninsula in Russia next month, reported Reuters. The LNG plant will help in delivering supercooled gas to Europe and Asia. ?