Three new Arctic-class ships on way to Russia's Yamal LNG terminal

Dynagas LNG Partners LP

05/09/2018 12:49

By Sabina Zawadzki
    LONDON, Sept 5 (Reuters) - Three new liquefied natural gas
(LNG) tankers capable of plowing through the Arctic ice have
completed sea trials in recent weeks and are due to start
operations at the Yamal LNG terminal in northern Russia, Reuters
shipping data shows.
    Novatek's  NVTK.MM  Yamal terminal has been ramping up LNG
shipments faster than expected after loading its first cargo in
December 2017, with two trains now running at capacity and a
third being commissioned.  urn:newsml:reuters.com:*:nL2N1VL0TC
    As part of the project, the first along northern Russian
shores that are trapped by thick ice for most of the year, 15
carriers in the Arc7 class were ordered from South Korea's
Daewoo Shipbuilding & Marine Engineering Co (DSME) 042660.KS .
    The Russian Arc7 classification means that a vessel is
capable of traversing waters north of Russia without the help of
icebreakers.
    The 170,000 cubic metre Rudolf Samoylovich, operated by LNG
shipper Teekay  TK.N , has left DSME's Korean shipyard at Okpo
and is due to arrive at Yamal's Sabetta port on Sept. 7, the
shipping data shows. 
    Vladimir Vize, managed by Mitsui Osk Lines (MOL) 9104.T ,
has been launched but remains moored at Okpo. Dynagas's  DLNG.N 
Georgiy Brusilov returned to Okpo on Aug. 25 after sea trials
that month, according to the data.
    The three vessels would lift the number of Arc7 tankers
operating from Yamal to eight, with another two due to be
delivered by the end of the year. Two Arc4 tankers, Dynagas's 
Clean Planet and SovComFlot's Pskov have also been shipping
Yamal LNG.
    All but one of the Arc7 vessels are named after Russian
arctic explorers and scientists. 
    Although most of Yamal's production is destined for Asia
under long-standing agreements, most of the cargoes have been
transported by the 10 carriers to Europe and then been
transferred to other tankers for onward shipment.
    In July, however, ice had thinned enough for some cargoes to
head east directly to China.  urn:newsml:reuters.com:*:nL8N1TT2RR urn:newsml:reuters.com:*:nS8N13E010 
    Analysts at boutique bank Evecore estimate that the first
two trains at Yamal needed 14 carriers to be taking LNG for the
terminal to be working at capacity. 
    This would indicate the terminal is four vessels short. But
shortening the first leg of the journey to Europe to ports such
as Rotterdam rather than Montoir, before conducting ship-to-ship
transfer, helps arctic vessels to return to Yamal faster.

 (Reporting by Sabina Zawadzki
Editing by David Goodman)
 ((sabina.zawadzki@thomsonreuters.com; +44 207 542 4051;))