Russia: Sovcomflot, SIBUR Enter Long-Term Charter Agreement for Two LPG Tankers

On 27 March 2012 SCF Group (Sovcomflot)- Russia’s largest shipowner, and oil and chemical holding SIBUR – a national leader in oil and chemical industry, signed a long-term charter agreement for two gas tankers to perform regular year-round transportation of SIBUR liquefied petroleum gas (LPG).

SIBUR plans to start export deliveries of LPG from its own terminal in the port of Ust-Luga in 2013.

The LPG tankers of 20,600 cubic metres capacity were designed with SCF specialists participation in accordance with SIBUR’s requirements and the recent technical achievements. The ships have a number of competitive advantages over existing vessels of this type. The tankers’ design include the system of ballast water treatment which must be installed on board the ships starting from 2013. The hull will be enhanced in accordance with the requirements for structural strength calculation for the year-round operation in the conditions of North Atlantic region during 25 years, which will allow to significantly increase the ships’ length of service in normal conditions. The tankers’ ice class 1B (Ice3 – in accordance with Russian Register of shipping classification) makes it possible to operate the ships effectively in low temperatures of the Baltic Sea during winter navigation.

The tankers will be constructed under the supervision of two classification societies – Lloyd’s Register and Russian Maritime Register of Shipping. Russian manufacturers of navigation equipment, units, gear, spare parts, as well as programme soft developers will participate in the construction of the vessels.

SCF Senior Executive Vice-President Evgeny Ambrosov noted: “We are glad to have established long-term relations with SIBUR which is one of the major national producers of liquefied petroleum gas. The widening of the service volume in the gas tankers segment fully corresponds to SCF Group’s strategy for the period till 2017. By this moment, a significant increase of LPG production and export is expected to take place, which will definitely require new modern means of seaborne transportation.

Taking into account the market’s demand our specialists, in a very short period of time, managed to reconcile with Hyundai Mipo Dockyard Co. Ltd the possibility of using two slots which were scheduled for earlier ordered Panamax vessels for the construction of LPG tankers under the terms, rather favourable for us. The delivery of the tankers is planned for 2013. In future we expect Russian shipbuilders to master the construction of the vessels of this type.”

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Source: SCF-Group, May 4, 2012