Shipowners bidding on a clutch of LNG carrier newbuildings for charter to Russian gas company Novatek have received technical and commercial offers from shipyards.
TradeWinds understands that owners now have to submit their indications on charter rates for up to six ice-class 1A Arc4 LNG carrier newbuildings — four firm vessels and two optional ships — to Novatek in May.
Novatek is understood to have invited at least 15 companies to participate but it is unclear how many will eventually take part
Russian owner Sovcomflot (SCF Group) is believed to be a contender, along with other companies that have previously either worked with Novatek directly on LNG carriers for Arctic business or negotiated on vessels for the work. These include Mitsui OSK Lines, NYK Line and Dynagas.
Clarification meetings are understood to be underway with these companies.
Other potential names in the frame are understood to be China Cosco Shipping, Stena LNG and Knutsen OAS Shipping. Also said to be vying is Teekay LNG, which has Arc7 LNG carriers on charter to Novatek.
Considerations
But those following the process said companies with little or no experience of Arctic shipping may be reluctant to line up against those already involved in these trades.
In addition, bank financing for vessels chartered to a Russian entity may prove another complication, particularly with the US introducing fresh sanctions against it and fresh political tensions ramping up with Western countries.
Novatek, which is looking for 2023 delivery dates on the newbuildings, has indicated it will make a decision on shipowner selection within August.
The Russian LNG producer is seeking additional newbuildings as it pushes ahead with its next Arctic-based liquefaction developments.
Novatek’s 16.5 million tonnes per annum Yamal LNG project is already in operation and the company has turned its attention to the shipping it requires for its under-construction, 19.8-mtpa Arctic LNG 2 development.
The company has already signed charter contracts on 21 Arc7 LNG newbuildings for this project, 15 of which will be the first full-size LNG carriers to be built in Russia. The remaining six are on order in South Korea.
But Novatek also wants lower notation ice-class vessels to take on transshipped cargoes from these higher ice-class newbuildings.
