Mester Commercial News Feed

NOVATEK, Sovcomflot to build 15 Arc7 LNG carriers

In an effort to enhance northern oil and gas fields and boost Arctic shipping, Sovcomflot and NOVATEK entered into long-term charter agreements so as to build 14 Arc7 ice-class LNG tankers.
What is more, partners informed that SMART LNG, a joint venture of SCF Group and NOVATEK, inked long-term time charter agreements for the vessels with Arctic LNG 2, the operator of the Arctic LNG 2 project.

The signing of the charter agreements allowed SMART LNG to conclude the corresponding contracts with the VEB.RF Group and Zvezda Shipbuilding Complex LLC for the construction and lease financing of these vessels.

In October 2019, the contracts for chartering, financing and construction of a pilot ice-class LNG tanker to be built at the Zvezda shipyard were signed.

For the records, earlier, participants of Arctic LNG 2 (NOVATEK, TOTAL, CNPC, CNOOC, and the consortium of Mitsui and JOGMEC) in accordance with the Projects’ Sea Transportation Strategy, approved the construction of 15 Arc7 ice-class LNG tankers at Zvezda Shipbuilding Complex.

The construction of 15 state-of-the-art ice-class gas tankers ensures the core formation of the Arctic fleet for the Project that will allow the year round transport of LNG along the Northern Sea Route to the Asian Pacific region, and provide an important stimulus to develop the Russian shipbuilding industry, as NOVATEK concluded.