Rus

The IX International Forum

Arctic: today and the future

December 05-07, 2019, St.Petersburg

HISTORY: 2018 - VIII INTERNATIONAL FORUM «ARCTIC: THE PRESENT AND THE FUTURE»

The government decided to use vessels under a foreign flag for the LNG projects

19.03.2019

The government decided to use vessels under a foreign flag for the LNG projects

The government of the Russian Federation has allowed to continue to use vessels under a foreign flag for the implementation of projects for the production of liquefied natural gas. The decree was signed by the Deputy Minister Dmitry Medvedev.

According to the document, it is permitted to use vessels whose chartering contracts have been concluded for a period at least 15 years for the carriage of LNG in the sea port of Sabetta and in Murmansk and Petropavlovsk-Kamchatsky until December 30, 2043. It is permitted to use vessels whose chartering contracts have been concluded for a period of six months in Sabetta until December 30, 2021.

The Merchant Shipping Code imposed a ban on the use of new foreign vessels to transport oil and gas in the Russian Arctic from January 1, 2019. The exclusive right to these works will be received by vessels built on the territory of the Russian Federation.  Foreign vessels may be allowed to such transportation only by a decision of the government of Russian Federation.Novatek, which ordered the construction of 15 gas carriers for Yamal LNG at foreign shipyards, asked to exclude them from the Code even before making changes to The Merchant Shipping Code in the summer.

The order also approved the list of vessels allowed to unload or load LNG.

It was reported earlier that the Ministry of Transport considered it appropriate to exclude for 3 years foreign vessels, operating on the Yamal LNG project, from under The Merchant Shipping Code, which banned on the use of such vessels in the Arctic from January 1, 2019.

In December, at the meeting on the development of the Arctic, Russian Transport Minister Yevgeny Dietrich noted that the agency had considered Novatek's proposals on those ships that were laid down earlier than the law on cabotage was passed. Meanwhile Novatek proposed to remove vessels that were chartered on short-term time charters because of accelerated introduction of LNG projects, from under the Merchant Shipping Code. But Dietrich declared that such removal can’t be indisputable and it was necessary to consider such proposals in a comprehensive manner, taking into account the possibilities of the Russian industry and experience in construction of such vessels.  



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