Daewoo wins tender to build 16 LNG carriers for Yamal LNG project

4 July 2013 (Last Updated July 4th, 2013 18:30)

South Korea's Daewoo Shipbuilding & Marine Engineering (DSME) has won a tender to build up to 16 Arc7 ice-class tankers to transport liquefied natural gas (LNG) produced at the Yamal LNG project in Russia.

Yamal LNG

South Korea's Daewoo Shipbuilding & Marine Engineering (DSME) has won a tender to build up to 16 Arc7 ice-class tankers to transport liquefied natural gas (LNG) produced at the Yamal LNG project in Russia.

Under the agreement signed between Yamal LNG and DSME, the South Korean shipbuilder will build, launch, equip, complete and deliver the ice-class LNG carriers.

The agreement also finalises the preliminary prices of the tankers and the timing of their launch and delivery.

DSME will also be responsible for optimising the hull design of the vessels and conducting model tests to enhance the overall performance of the tankers.

The deal will allow the transfer of rights to finance the vessels' construction to third parties, which will include shipping companies selected by Yamal LNG.

DSME will provide training to Russian specialists at overseas shipyards and provide technical support in setting up gas carrier production in the country.

Designed especially for the LNG Yamal project, the Arc7 ice-class gas carriers will be designed to operate in Arctic conditions of up t 50°C and independently navigate in ice more than two metres thick.

Russian gas producer Novatek holds an 80% stake in the Yamal LNG project, with the remaining 20% stake owned by Total.

After 2018, Yamal LNG project is expected to produce 16.5 million tonnes of liquefied natural gas per year.

In June 2013, Russian shipping firms Sovcomflot, Novatek and Vnesheconombank (VEB) signed an agreement for the construction of two LNG carriers for the Yamal LNG project.

Under the deal, VEB will provide finance for the construction of two gas carriers, while Sovcomflot will be responsible for operating them as a bareboat charterer and technical manager.


Image: DSME will build, launch, equip, complete and deliver 16 Arc7 ice-class tankers for the Yamal LNG project. Photo: 2003-2013 Gazprom.