Sovcomflot enters financing and charter for Arctic LNG 2-bound carrier

Illustration purposes only (Image courtesy of Sovcomflot)

Russian shipping company Sovcomflot has signed a financing and time-charter agreements for the first icebreaking LNG carrier for Novatek’s Arctic LNG 2 project.

SCF Group and VEB.RF Group, a Russian financial institution, signed an agreement for lease financing of the lead ship in a series of icebreaking LNG carriers expected to be built to serve the Arctic LNG 2 project.

At the same time, SCF and Novatek signed a long-term time charter agreement for this tanker.

The vessel will be constructed at the Zvezda Shipbuilding Complex in the Russian Far East. It is designed for year-round operations in ice conditions of the Kara Sea and the Gulf of Ob and will be able to sail independently through ice over two meters thick.

According to the company, all the LNG carriers in the new series will be operated under the Russian flag.

The Russian Maritime Register of Shipping (RS) will provide technical supervision during the construction of the vessel series.

To remind, Zvezda signed a construction contract with Sovcomflot for a pilot LNG carrier for Novatek’s Arctic LNG 2 project back in April.

Later in the year, Samsung Heavy Industries concluded a contract with Zvezda shipyard to build LNG carriers for the Arctic LNG 2 project.

It is worth noting that the Arctic LNG 2 partners reached the final investment decision on the $21.3 billion project in early September.

The project consists of the development of the Utrenneye field and the construction of a natural gas liquefaction plant in the Russian Arctic region.

The LNG plant will consist of three liquefaction trains with an overall production capacity of 19.8 million tons per annum. The first train is scheduled for 2023, with LNG trains 2 and 3 will be launched in 2024 and 2026, respectively.

The project participants include Novatek (60 percent), Total (10 percent), CNPC (10 percent), CNOOC Limited (10 percent), and Japan Arctic LNG, a consortium of Mitsui & Co and JOGMEC (10 percent).

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