Russia’s Yamal LNG could be faced with a whopping newbuilding bill estimated at $3.6 billion to $5.6 billion, depending on the number of ice-breaking LNG carriers required for the Arctic production project.

Debate was raging at this week’s Gastech show in London about the likely price of the 12 to 16 ice-breaking LNG carriers recently put out to tender for the planned 16.5 million tonnes per annum export project.

While some were suggesting higher figures, those following the development closely indicated the ships are likely to cost somewhere between $300 million and $350 million each.

The operator recently issued a tender for the vessels to yards and shipowners, and under an ambitious timetable has asked for commercial offers by December.

Yamal LNG shipping manager Espen Selstad said the company is now working on the selection of yards and shipowners, and getting newbuilding slots in place. Progress would allow project partners Novatek and Total to form a clear idea of the price of the ships in advance of a planned final investment decision at the end of this year.

Selstad told delegates that after testing and feasibility studies, the operator has settled on a 170,000-cbm Arc 7 ice-class LNG carrier design with three azimuth propellers and a moderate ice bow.

In open water the ships will sail bow first as per normal but in heavy ice they will turn and move stern first.

The vessels will have tri-fuel propulsion systems and deck machinery designed for use in Arctic conditions. The choice of cargo containment system remains open until the shipbuilder or builders of the vessels have been selected.

Selstad said Yamal LNG, which plans to sell 50% of its cargoes to western buyers with the other half earmarked for Asia, plans to use the Northern Sea Route to export cargoes to Asia during the summer.

All shipments will travel towards Europe during the winter for transhipment to other destinations.

The first 5.5 million tonnes per annum train is due on-stream in 2016 with the second to follow a year later and the third in 2018.