Russian joint venture orders ten more LNG carriers

Sovcomflot (SCF) and natural gas producer, Novatek, have signed contracts for ten icebreaking Arc7 LNG carriers to be built at Russia’s Zvezda Shipbuilding Complex in the country’s far eastern Primorski Krai region. The vessels, which will be leased from Russian state development corporation, VDB.RF, will be operated under the Russian flag and built to Russian class.

The latest contracts take the total number of Arc7 LNG carriers on order to 15, with the first ship in the series signed up in October 2019 and a deal on four sister vessels in January this year. With the latest orders and related ten-year timecharter contracts, SCF now has USD 20 billion in contracted future earnings and receivables, the company said.

SCF’s President and CEO, Igor Tonkovidov, said: “Shipbuilding and timecharter contracts for 15 Arc7 LNG carriers, signed between 2019 and 2020, enable the Russian shipping community to play a role in transporting cargoes of strategic importance for the Russian economy, which are generated by large-scale energy projects in the Russian Arctic.

“Cooperation between SCF, NOVATEK, VEB.RF Group and Russian shipbuilders paves the way for establishing the domestic production of LNG carriers,” he continued, “which entails adopting advanced technologies and engineering solutions.”

Article Editorial staff Ship&Offshore
Article Editorial staff Ship&Offshore