Draft law on tariffs in foreign currency for LNG transshipment in the Arctic passed in its first reading

Such changes were requested by NOVATEK, which has projects for the construction of LNG terminals in Murmansk and Kamchatka.

The State Duma adopted a draft law in its first reading that allows setting tariffs in foreign currency for services for loading, unloading and storage in seaports of LNG produced in the Arctic zone of the Russian Federation.  The document was submitted to parliament by the government in November 2021.

 “The adoption of the draft federal law is aimed at eliminating the risks of non-fulfillment by private investors of their obligations to build (reconstruct) LNG transshipment complexes as seaport infrastructure facilities,” the explanatory note to the bill says.

In June the Ministry of Transport, recalls Interfax, prepared a draft law that allows fixing in foreign currency tariffs for transshipment of LNG at NOVATEK's terminals.  The head of NOVATEK, Leonid Mikhelson, addressed Russian President Vladimir Putin with such a request.

Projects for the construction of LNG storage and transshipment facilities in the Murmansk Region and Kamchatka, which are being built by NOVATEK, are being implemented by project participants together with foreign shareholder companies with the attraction of credit resources in foreign currency. The Arctic LNG 2 project includes two large transshipment ports in Murmansk and Kamchatka, where, according to Russian law, transshipment tariffs can only be set in rubles. The LNG transshipment facilities under construction in Kamchatka and the Murmansk region are designed to ensure efficient LNG transportation from Arctic LNG 2 and other NOVATEK projects by organizing transshipment from Arc7 ice-class LNG tankers to conventional vessels.  Each of the terminals includes a floating LNG storage facility with a capacity of 360 thousand cubic meters with two ship-to-ship transshipment points.