Sovcomflot secures funds for LNG carrier duo

Russia’s largest shipping company Sovcomflot has secured $297 million ten-year credit facility with ING Bank, KfW IPEX-Bank and Crédit Agricole Corporate and Investment Bank to fund LNG carrier pair. 

The funds will be used towards pre- and post-delivery financing of two new-generation 174,000-cbm Atlanticmax LNG carriers, which will operate under long-term charters to Shell.

The vessels feature a slow-speed dual-fuel X-DF diesel engine and gas boil-off partial liquefaction system, Sovcomflot said in its statement.

The first of these vessels is scheduled for delivery in the second half of 2020, the other in the first half of 2021.

The addition of these vessels will increase the group’s liquefied gas carrier fleet to 16 vessels and is fully in line with the group’s strategy of expanding its long-term business with core clients.

This deal follows a similar $149 million credit facility signed in November 2018, between SCF Group and these three banks, to finance the construction of an LNG carrier, which will operate on long-term charter to Total.