South Korean shipbuilder DSME has signed newbuilding contracts for two huge LNG floating storage units worth a total of KRW 901bn ($748m).
The yard announced it had won orders to build two 360,000-cbm LNG barges which it described as LNG gas storage and transshipment facilities.
The deal prices the vessels at just over $374m each.
DSME said the contract was from “Russian shipowners” without giving further details. The contract also includes the provision for two optional units.
DSME said the FSU barges are due for delivery in 2022.
TradeWinds reported last month that DSME was poised to scoop the Russian FSU deal.
Preferred shipowner
This publication understands MOL has been selected as the preferred shipowner but is expected to sign up in partnership with other entities, which will include Russian interests.
DSME said the LNG barges will receive and store LNG from icebreakers and then load cargoes into conventional vessels.
The FSUs are due to be installed in Murmansk and Kamchatka in Russia and at the western and eastern ends respectively of the Northern Sea Route (NSR).
They will take on cargoes from the Arc7 LNG fleet, which serve the Yamal LNG project, leaving these specialised vessels to focus on shipments from the ice-bound waters of the NSR.
Their planned installation is part of Russia's plan to open up the NSR.
A DSME official said: “In the wake of the Covid-19, some of the large-scale projects are being delayed, so this order secures a stable sense of work. This will be a great help.”
DSME has won a total of about $1.33bn in ships this year, including these latest FSUs, one Q-Max size floating storage and regasification unit, two shuttle tankers, and one VLCC.
