Red Star Shipyard is expected to receive another four ice-breaking LNG carriers
Russia's largest state-owned shipping company, Sovcomflot, will add an order to the Red Star Shipyard (Zvezda), a subsidiary of the Russian Far East Shipbuilding and Repair Center (FESRC), to add four ice-breaking LNG carriers worth a total of $2 billion.
According to Russian media reports, it is reported that Russian energy giant Novatek has signed a temporary agreement with Red Star Shipyard and Sovcomflot for the construction and use of four additional Arc7 icebreaker LNG vessels. It is expected that the official contract will be reached this summer.
According to sources, the four ice-breaking LNG carriers are scheduled to be delivered in 2025, and the total cost may reach about $2 billion. The Red Star Shipyard will work with Korean ship companies to complete the construction of four LNG ships.
Novatek plans to build 15 icebreaking LNG vessels for its Arctic LNG export project Arctic LNG2, all of which will be built by the Red Star Shipyard. Novatek will conduct a tender and select some shipowners as the owners of the LNG ships and sign a charter party with the shipowners. Sovcomflot is expected to receive a large part of the order.
On April 5 this year, Sovcomflot ordered the first Arc7 icebreaker LNG ship at the Arctic LNG2 project at the Red Star Shipyard. In December last year, Novatek signed a contract for the first LNG ship (COA) with Sovcomflot for a contract period of 25 years, requiring the new ship to be delivered by the end of 2022 and the ice test by April 2023.
The Arctic LNG2 LNG ship will be designed in an icebreaker style similar to the series of 15 icebreaking LNG ships built by Daewoo Shipyard for the Yamal LNG project. Daewoo Shipbuilding is also the only shipbuilding company in the world with the construction technology and experience of icebreaking LNG carriers.
Since the Red Star Shipyard itself has no experience in building and delivering LNG ships, it has not yet fully grasped the construction technology of icebreaking LNG ships. Therefore, after completing a considerable part of the project at an overseas shipyard with advanced construction technology, it will be transported to the Red Star Shipyard for follow-up work.
Earlier reports said that the Red Star Shipyard will select technology partners by June of this year. Novatek's LNG ship big order has triggered fierce competition between Chinese and Korean shipbuilding companies. Korean ship companies have strong market competitiveness in building ice-breaking LNG ships, so they are looking forward to this order. However, with the cooperation and cost advantages with Russia, Chinese ship companies will also have the opportunity to participate in the competition and hope to capture some orders.
