Sovcomflot and Total sign time charter agreement for up to 7 years for a newbuilding 174,000-cbm LNG carrier
PAO Sovcomflot (SCF Group) and Total have concluded a time charter agreement for up to 7 years for a newbuilding 174,000-cbm LNG carrier, to be owned and operated by SCF, with options for up to two additional vessels.
The ceremony was held on 21 January 2021 and was attended via videoconference by: Igor Tonkovidov, President and Chief Executive Officer of PAO Sovcomflot; Thomas Maurisse, Senior Vice President for LNG at Total, and Seong-Yong Park, Senior Executive Vice President and Chief Operating Officer of Hyundai Heavy Industries.
The new vessel will be the latest in a series of SCF’s new-generation conventional Atlanticmax LNG carriers, with three sister ships already in operation: SCF La Perouse, SCF Barents and SCF Timmerman.
The vessel will be fitted with an X-DF propulsion system, operated by a slow-speed diesel engine with a direct drive to the propellers, which will enable a substantial reduction in the vessel’s fuel consumption when compared with previous generations of LNG carriers.
The new carrier will also be fitted with a hull air lubrication system which, combined with two shaft power generators with frequency-to-current converters, is expected to deliver a further significant decrease in fuel consumption and greenhouse gas emissions.
Another environmental feature of this series of new-generation vessels is a partial re-liquefaction system, which allows cargo boil-off gas to be returned to the tanks.
Delivery of the LNG carrier to the Charterer is scheduled for the third quarter of 2023.
Igor Tonkovidov, President and CEO of PAO Sovcomflot, said:
"We are pleased that SCF Group’s shipbuilding programme will be supplemented with a new gas carrier that meets all the current international standards regarding environmental protection, as well as the Charterer's requirements for energy efficiency, quality and navigational safety.
“We are grateful to our valued partners at Total for the opportunity to participate in this interesting project which extends further our cooperation in LNG transportation with one of the world’s leading international energy companies.
“The success in Total’s project tender once again demonstrates SCF’s high standards and capabilities in LNG shipping as well as with other types of energy.
“The continued development of our energy transportation services that serve long-term projects, provides the fixed return element to SCF’s business model. It is in line with the corporate strategy approved by our shareholders and allows us to reduce the negative impact of conventional tanker freight market fluctuations on the Company’s results."
PAO Sovcomflot (MOEX:FLOT) is one of the global leaders in the maritime transportation of oil and gas and the servicing of offshore hydrocarbons production. The Group’s fleet comprises 146 vessels with a total deadweight of over 12.7 million tonnes, including vessels owned through joint ventures. More than 80 vessels have an ice class.
Sovcomflot is involved in servicing large oil and gas projects in Russia and around the world: Sakhalin-1, Sakhalin-2, Varandey, Prirazlomnoye, Novy Port, Yamal LNG, Tangguh (Indonesia). The company is headquartered in Saint Petersburg, with offices in Moscow, Novorossiysk, Murmansk, Vladivostok, Yuzhno-Sakhalinsk, London, Limassol, and Dubai.
SCF currently has 16 gas carriers in operation, with further 19 vessels under construction, including the latest vessel mentioned in this release. The Group has been an independent owner and operator of LNG carriers since 2006 and was the first Russian company to successfully enter this premium segment of the global shipping market. Amongst the key charterers of the gas fleet are: Gazprom; Sakhalin Energy; Shell; Yamal LNG; Sibur, and Tangguh LNG.
