Daewoo Shipbuilding & Marine Engineering has cancelled a second order for a specialised ice-breaking LNG carrier newbuilding that was originally contracted as part of a three-vessel package by Russian shipowner Sovcomflot (SCF Group).
The South Korean yard, which did not name the shipowner involved, said the owner had failed to make an interim payment on the vessel by the scheduled date.
DSME said it would revise the number of vessels it is obliged to deliver to the owner under the contract, which was signed on 9 October 2020, from two LNG carriers to one.
Industry players said this identifies the contract as the deal signed with Sovcomflot on three 172,410-cbm Arc7 LNG carriers priced at around $283.3m each.
DSME cancelled a first contract under the three-ship order on 18 May after a payment on the vessel was not met.
Sovcomflot signed up to the three Arc7 LNG carrier newbuildings in October 2020, with Japan’s Mitsui OSK Lines also inking contracts for a trio of Arc7 LNG carriers at the same yard.
All six ships are chartered on 30-year time charter contracts by the operator of the Novatek-led Arctic LNG 2 project, which is under construction in Russia.
All the newbuildings are scheduled for delivery in 2023, which was to have dovetailed with the planned start-up of the first liquefaction train of the now-delayed project.
Those following the Sovcomflot vessels said shipyards are struggling to complete them as sanctions against Russia are hitting the delivery of components and materials for the ships.
Figures for the first half of 2022 reveal a record haul of LNG carrier newbuildings for shipbuilders, with the 100-plus total topping all annual records to date.
Attention is now focused on the other Arc7s and two super-size LNG floating storage units ordered for the Russian Arctic project being built at DSME.
MOL is also building four Arc4 LNG carriers at DSME for charter to Novatek interests, while NYK Line, working in partnership with Sovcomflot, is constructing a similar quartet at Samsung Heavy Industries.
Industry players also continue to circulate around three LNG carrier newbuildings for Sovcomflot at Hyundai Heavy Industries.
