Russia is establishing its own shipbuilding company due to a shortage of LNG tankers

Novatek, Russia’s largest producer of liquefied natural gas, has established a subsidiary, Severny Engineering, to build its own vessels and floating facilities. 

This was reported by Reuters.

According to data from the Russian state registry, the company was registered on March 25, and Ilya Lushchikov was appointed as its director. This decision was driven by an acute shortage of ice-class tankers that arose after the introduction of Western sanctions in 2022, which restricted the aggressor’s access to critical maritime technologies.

Currently, the main supplier of such vessels is the Zvezda shipyard, but its capacity is insufficient to meet the needs of the Arctic LNG-2 project. To date, the shipyard has delivered only one Arc7-class tanker capable of breaking through ice up to two meters thick, although plans to build 15 units had previously been announced. Its own engineering base will allow Novatek to independently design and maintain its fleet, in an effort to circumvent export restrictions. Despite these efforts, the initiative’s success remains in question due to Russia’s deep technological dependence on foreign components. For now, the new company will focus on fulfilling current shipbuilding orders and developing new floating plants for the Arctic regions.