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Steel Cutting Ceremony for New Arc7 Ice-Class LNG Tanker at Zvezda Shipyard

Moscow, 19 January 2021. PAO NOVATEK (“NOVATEK” and/or the “Company”) announced today that a steel cutting ceremony took place at the Zvezda Shipbuilding Complex in the Russian Far East for a new Arc7 ice-class LNG tanker to transport LNG from NOVATEK’s Arctic LNG 2 project, implemented jointly with international partners TOTAL, CNPC, CNOOC, Mitsui and JOGMEC.   The new Arc7 ice-class tanker was ordered by SMART LNG, a joint venture between NOVATEK and PAO Sovcomflot. Arctic LNG 2 and SMART LNG had previously signed charter agreements for 14 similar Arc7 LNG carriers to be built at the Zvezda Shipbuilding Complex.

The new Arc7 ice-class tankers are designed to ensure year-round navigation along the Northern Sea Route, including its Eastern part, and will have increased icebreaking and maneuvering characteristics as compared to the previous type of Arctic tankers currently used by the Yamal LNG project.

"The construction of the fleet of next generation Arctic ice-class gas carriers at the Zvezda Shipbuilding Complex for Arctic LNG 2 will make it possible to localize technologies for the construction of high-tonnage and high-tech vessels in Russia," said Evgeniy Ambrosov, NOVATEK’s Deputy Chairman of the Management Board – Director for Marine Operations, Shipping and Logistics. “All Arc7 ice-class LNG carriers ordered by SMART LNG at Zvezda will be registered under the flag of the Russian Federation and will be fully equipped by Russian crews. To properly train the Arctic crews, it is now necessary to use the full potential of the Russian educational system, including the country's largest maritime educational Center – Maritime State University named after Admiral G.I. Nevelskoy in Vladivostok."

PAO NOVATEK is one of the largest independent natural gas producers in Russia, and in 2017, entered the global LNG market by successfully launching the Yamal LNG project. Founded in 1994, the Company is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons. Upstream activities of the Company’s subsidiaries and joint ventures are concentrated mainly in the prolific Yamal-Nenets Autonomous Area, which is the world’s largest natural gas producing area and accounts for approximately 80% of Russia’s natural gas production and approximately 15% of the world’s gas production. NOVATEK is a public joint stock company established under the laws of the Russian Federation.