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Sovcomflot & NOVATEK sign SMART JV Agreement

Logistic News - Published on Tue, 10 Sep 2019

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In Vladivostok, during the 5th Eastern Economic Forum, PAO Sovcomflot and PAO NOVATEK concluded an agreement to establish a JV SMART LLC. The agreement was signed by Sergey Frank, President and CEO of Sovcomflot, and Leonid Mikhelson, Chairman of the Management Board of NOVATEK. The main purpose of the JV is to ensure safe year-round maritime LNG logistics from the Arctic LNG 2 and other current and prospective projects of Novatek. The newly established company will work with the relevant shipyard to provide the technical designs for future vessels, place shipbuilding orders and supervise their construction. The JV will act as the ship-owner and fleet operator as well as arrange vessels financing.

In total, 17 new-generation Arc7 LNG carriers are planned to be built at the Zvezda shipbuilding complex, in cooperation with technology partners of the Russian shipyard. The resulting vessels are expected to be delivered from 2023 to 2026. The vessels’ technical specifications will differ from the LNG carriers of the Christophe de Margerie series.

Notably, the anticipated vessel design foresees a changed hull shape and better icebreaking capabilities, to enable efficient commercial shipments from the Gulf of Ob eastwards along the Northern Sea Route all year-round. The vessels will be operated under the Russian Federation flag. It is anticipated that the financing for the vessels’ construction will be organised with the assistance of VEB.RF on the basis of the project structure taking into account best Russian and international practices. In 2010, Vneshekonombank successfully financed the construction of the two Arctic shuttle tankers of the Mikhail Ulyanov series at the Admiralty Shipyards in St Petersburg. The ships are now in year-round operation serving the Arctic Prirazlomnoye project.

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Posted By : Mohan Sharma on Tue, 10 Sep 2019
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