Oil company Shell and Sovcomflot, which is Russia’s main shipping group, are embarking on a partnership with the hopes of being the forerunner when it comes to shipping liquefied natural gas through the Arctic waters. The two companies have also struck a deal where Shell will charter Sovcomflot’s aframaz oil tankers.

The agreement, which is being referred to as a “general co-operation agreement”, includes a variety of LNG shipping projects within Russia, the most notable being the decision to partner up in the Arctic.

The two companies plan on furthering their mutual co-operation in the future development of the Sakhalin II project, plus developing mutually satisfying solutions for any shipping involving the Yamal Peninsula gas fields. Shell and Sovcomflot will also work together to improve LNG shipping technologies and develop floating storage and re-gasification units that will be used in Russia’s remote regions.

Russian Prime Minister Vladimir Putin believes that the partnership between the two companies “allow us to not only use the freight capacity of Sovcomflot but also think of expanding and improving our own concept of specialised vessels construction, which, of course, will be in demand in the nearest future”.

Sergey Frank, Sovcomflot’s chief executive said that the deal will make use of Shell’s “profound experience” with producing and transporting LNG and Sovcomflot’s knowledge base and technical potential in order to deliver various cargoes, including natural gas, through the harsh, icy Arctic waters.

The partnership is not only a natural one, but also a strong one, with Shell’s impressive track record in the LNG shipping industry and Sovcomflot’s extensive relationships with Russia’s stakeholders like gas big-wig Gazprom.

And Shell is already on Gazprom’s short list as a possible candidate to develop the vast natural gas resources near the Yamal Peninsula.