An armada of gas carriers ordered to supply Russian LNG to Asia

By | September 7, 2020
An armada of gas carriers ordered to supply Russian LNG to Asia

15 Arc7 ice-class tankers will be built for the second LNG plant in the Arctic, which will make it possible to supply Russian liquefied gas via the Northern Sea Route to the Asia-Pacific region all year round. It is planned that all 27 billion cubic meters of gas can go to the region annually.

The Arctic LNG 2 project, 60% of which is owned by Novatek, has signed agreements with Modern Arctic Marine Transport LNG (SMART LNG) for the long-term chartering of 14 Arc7 ice-class LNG carriers. They will be built at the Zvezda shipyard. A total of 15 vessels are planned for the second Russian LNG plant in the Arctic.

According to Kommersant, the total cost of the vessels will be about $ 5 billion. Sovcomflot, which together with Novatek is the founder of SMART LNG, told the publication that the charter conditions are similar to those of the Yamal LNG project: 30 years, until 2045.

“The construction of 15 modern high-ice-class gas carriers at SSK Zvezda ensures the formation of the main components of the Arctic fleet“ Arctic LNG 2 ”. This will allow for year-round transportation of LNG along the Northern Sea Route to the Asia-Pacific region and will provide a significant contribution to the development of the Russian shipbuilding industry, “Novatek said in a statement.
“Taking into account the new time charter agreements, the total contracted future revenue of the SCF Group amounted to USD 20 billion. All 15 LNG carriers of this series will be registered under the state flag of the Russian Federation, their construction will be supervised by the Russian Maritime Register of Shipping (RS), ”said Sovcomflot.

For the first Russian LNG project in the Arctic, Yamal LNG, 15 LNG carriers were also ordered. True, they were built in South Korea.

Arctic LNG 2 will be an even more powerful LNG project. It is planned that it will annually produce 19.8 million tons of liquefied gas (27 billion cubic meters) for the market. The capacity of Yamal LNG is now 16 million tons (22 billion cubic meters).

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