DSME to Build 1st ARC7 Ice-Class Tanker for Yamal
- Business & Finance
Russia’s state-owned shipping company Sovcomflot has placed its first order for a $316 million worth liquefied natural gas (LNG) carrier.
South Korean shipbuilder, Daewoo Shipbuilding & Marine Engineering Co. Ltd. (DSME) will be responsible for the construction of this ARC7 ice-class tanker, the first of its kind in the industry.
This vessel kicks off a $5 billion newbuild program under which 16 icebreaking LNG carriers will be built. The vessel will be used for transportation of liquefied natural gas from a gas field in the Yamal Peninsula (Yamal LNG), western part of Siberia.
Delivery of the ship is slated for June 2016.
Back in July last year, after considering proposals of seven world-leading shipyards, DSME was announced as the winner of the tender and Yamal LNG signed a slot reservation agreement with the shipyard.
The agreement stipulates the options to build, launch, equip, complete and deliver up to 16 tankers and establishes the preliminary prices of the tankers and the timing of their launch and delivery.
According to the provisions of the agreement, the shipyard will optimize the hull design of the vessels and conduct model tests to improve the overall tanker performance. The agreement also allows for the transfer of rights to finance the tankers’ construction and purchase of the tankers to third parties – shipping companies chosen by Yamal LNG.
The ARC7 ice-class LNG carriers will enable year round deliveries of LNG produced by the Yamal LNG project and will be designed for ambient temperatures of up to minus 50°C and independent navigation in ice more than 2.1 meters thick.
Yamal LNG project envisages the construction of an LNG plant with annual capacity of 16.5 million tons per annum based on the feedstock resources of the South-Tambeyskoye field. According to the PRMS reserve standards, the proven and probable reserves of the South-Tambeyskoye field as of 31 December 2012 were appraised at 907 billion cubic meters of natural gas. The Project also requires the construction of transport infrastructure including a sea-port and an airport located at Sabetta (north-east of the Yamal Peninsula).
Yamal LNG is currently owned by NOVATEK (80%) and Total (20%).
WMN Staff, March 17, 2014