Russia's new Zvezda Shipyard is in line for big subsidies to help it build new LNG carriers, a minister has confirmed.
Industry and trade minister Denis Manturov told reporters that the yard will bank about RUB 50bn ($784m) to construct up to 15 vessels for Novatek's Arctic LNG 2 project.
The cash is designed to offset the higher price of constructing the units in Russia rather than in South Korea or China.
"I can only give the approximate total amount taking into account 15 gas carriers, but the final calculation has not been made yet. It's about RUB 50bn," Interfax cited Manturov as saying.
The state requires the ships to be built in Russia, while components must be made in the Eurasian Economic Union.
Russian media had previously reported potential subsidies of RUB 60bn.
Reports claimed each of up to 15 planned Arc7 newbuildings will cost $383m, for a total of $5.74bn.
But this price only applies if the yard has a full orderbook.
Otherwise the cost of the lead ship will rise to $698.2m, it was reported.
This would make the orders twice as expensive as in South Korea, which is why the subsidies will reportedly kick in.
Slots for the vessels have been reserved at Zvezda by Novatek for construction between 2020 and 2026.
