Daewoo Shipbuilding awarded 16 LNG carriers contract for Yamal LNG project

South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering has won in a tendering process and was awarded the contract for 16 ARC7-class LNG tankers for NOVATEK-led Yamal LNG project, ITAR-TASS reported.  There were 7 bidders participating in the tender.

JSC Yamal LNG and DSME signed an agreement for the construction, launching, equipment supply, outfitting and delivery of up to 16 tankers. The agreement terms establish the preliminary cost / schedule of completion and delivery.

The agreement also provides for transfer of rights to finance the newbuilds construction to third parties, those picked by JSC Yamal LNG.

Under the agreement, the South Korean shipyard is also committed to hand over to a Russian shipyard the necessary knowledge for construction of gas carriers, including the transfer of design and other technical documentation, training of Russian engineers and workers and subcontracting local shipbuilders to execute part of the contract.

ARC7 LNG tankers are designed for year-round transportation of liquefied natural gas produced in the "Yamal LNG" project,  to operate in the severe Arctic conditions (-50º C) with ice thickness of more than 2.1 meters.

The cost of one LNG carrier is estimated at $ 220-230 million, thus the total project cost will make up nearly $ 3.5 billion, the Russian news agency said.