SCF secures financing for first Arctic LNG carrier

Sovcomflot has on Friday signed a US$260 million 13-year loan agreement with VTB Bank to finance the construction of its Arctic LNG tanker for the Yamal LNG project. 

The Arc7 ice class SCF Yamal will have the capacity to transport 172,600 cubic meters of liquefied natural gas and will be able to navigate in ice fields of up to 2.1 meters thick.

The vessel was originally scheduled for delivery on June 30, however, earlier in May, SCF and the South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering (DSME) that is constructing the carrier, have delayed the delivery to January 31, 2017.

Speaking about the agreement with VTB Bank, Sovcomflot’s CEO Sergey Frank, said the deal which is first of its kind in Russia, will ensure the financing for the construction of the vessel. He added that the construction is nearing completion.

According to DSME, the contracted price for the LNG tanker was around KRW 340 billion (approx. $290 million).

Once constructed, the LNG tanker will be operated under a long-term time charter agreement between Sovcomflot and Yamal LNG.

1 KRW = 0.000851987 USD

LNG World News Staff