Russian Cabinet Allows 28 Foreign Ships To Transport LNG Via Northern Sea Route Until 2044

The Russian cabinet has authorized 28 foreign-flagged vessels to transport liquefied natural gas (LNG) via the Northern Sea Route, which runs along the Russian Arctic coast, until December 30, 2043, according to a document published on the website of the Russian government

MOSCOW (UrduPoint News / Sputnik - 18th March, 2019) The Russian cabinet has authorized 28 foreign-flagged vessels to transport liquefied natural gas (LNG) via the Northern Sea Route, which runs along the Russian Arctic coast, until December 30, 2043, according to a document published on the website of the Russian government.

According to the amendments to the Russian Merchant Shipping Code that came into force on December 30, 2018, only Russia-flagged ships could transport hydrocarbons produced in Russia and loaded onto vessels in the waters of the Northern Sea Route to the first unloading or transshipment point.

The new decree authorizes 28 foreign vessels, with charter agreements signed for no less that 15 years, to transport natural gas, including LNG, and gas condensate produced in Russia and loaded onto these vessels in the Arctic port of Sabetta to the first unloading or transshipment point.

The waivers will also be applicable in cases when natural gas or gas condensate is loaded onto the vessel in Sabetta and unloaded or transshipped in ports located in Murmansk and Kamchatka. The cabinet has also ruled to allow international sea shipment of natural gas and gas condensate by other vessels, apart from these 28, with charter agreements signed for no less that six months until December 30, 2021.

Russian gas producer Novatek has requested the country's Transport Ministry in August to allow the company to transport LNG via the Northern Sea Route by ships under flags other than Russia for domestic shipments.