Russian Northern Sea Route Critical to Development of Yamal Megaproject [REPORT]

MOSCOW (Dow Jones)–Russian independent natural gas producer OAO Novatek (NVTK.RS) shipped nine cargos or more than 600,000 metric tons of stable gas condensate via the Northern Sea Route to China and other Asia Pacific markets in 2011, the company said Wednesday.

In September 2010, Novatek sent its first icebreaker with stable gas condensate via Russia’s Arctic waters to the Chinese port of Ningbo. The company has signed a deal with Russia’s state nuclear icebreaker fleet, Atomflot, to secure stable supplies through the Northern Sea Route from the Yamal LNG project–a joint project with France’s Total SA (TOT).

“The use of the Northern Sea Route for hydrocarbon transportation is an integral part of our logistical strategy to develop prospective fields in the Yamal peninsula,” Novatek said in its full year financial results published Wednesday.

-By Jacob Gronholt-Pedersen, Dow Jones Newswires