Daewoo to supply ice-class vessels for Yamal LNG project

South Korea-based Daewoo Shipbuilding & Marine Engineering has secured contracts for nine ice-class LNG vessels which will be used to transport gas from Yamal LNG project in Russia.

Three vessels have been ordered by a joint venture (JV) between Japan’s Mitsui O.S.K. Lines and China Shipping Group. The remaining six vessels have been ordered by a JV between Canada’s Teekay LNG Partners and China LNG Shipping worth about $2.1bn.

All the vessels will have the ability to sail in icy seas with up to 2.1m ice thickness in order to ship LNG from Yamal plant at Sabetta in Yamal Peninsula, Russia, to main global LNG markets.

The project includes the development of the South Tambey gas field, located near Sabetta in the Yamal peninsula in Russia.

Russia-based Novatek has a 60% stake in the project, while French energy firm Total and China National Petroleum Corporation each own a 20% interest.

The project is expected to start operations in early 2018. It will feature three LNG trains with a total expected capacity of 16.5 million tonnes of LNG a year.

Teekay GP chief executive officer Peter Evensen said that the six newbuilds will both increase and extend the average duration of Teekay LNG’s current fixed-rate contact portfolio, providing further long-term stability for the partnership’s cash flows.

"These vessels also add to Teekay LNG’s existing pipeline of growth projects scheduled to deliver between now and 2020, which includes our five MEGI LNG carrier newbuildings, 10 LPG carrier newbuildings ordered through our Exmar LPG joint venture, and our ownership interest in four LNG carrier newbuildings that will be chartered to BG Group," Evensen added.

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Image: Yamal Arctic LNG Carrier. Photo: courtesy of Mitsui O.S.K. Lines.