On May 18, 2018, the board of directors of Novatek resolved to create a transportation subsidiary called Maritime Arctic Transport LLC to manage and optimize transportation costs, build up Arctic navigation skills, and provide for centralized management of the company’s Arctic fleet.

Novatek’s management board chairman Leonid Mikhelson said, “Novatek’s long-term development strategy envisages a significant growth in LNG production from the company’s vast hydrocarbon resource base located on the Yamal and the Gydan peninsulas in the Arctic zone of more than 55 million tons per annum by 2030. Therefore, establishing an efficient Northern Sea Route shipping model is one of the company’s key priorities to realize the long-term strategy. Creating the company’s own shipping company fully supports this goal and will optimize transportation cost and ensure a well-balanced, centralized management structure to improve the competitiveness of Novatek’s Arctic projects.”