Japan's Mitsui OSK Lines (MOL) is buying a 49% holding in two huge new LNG floating storage units (FSUs) that will be used for transshipments in the Russian Arctic.
The world's largest such barges are owned by Russian state-owned State Transport Leasing Co (GTLK).
MOL had previously been linked to an order for the barges but, in June 2020, South Korea's Daewoo Shipbuilding & Marine Engineering said “Russian shipowners” had signed newbuilding contracts for the FSUs worth a total of KRW 901bn ($748m).
The units are set for delivery in 2022.
They will be bareboat-chartered to Arctic Transshipment, a joint venture of Russian energy company Novatek and French major TotalEnergies.
Reloading cargoes
The vessels will serve Novatek's Yamal LNG and Arctic LNG 2 projects in Kamchatka and Murmansk by reloading gas cargoes from ice-class LNG carriers on to conventional LNG carriers.
The 360,000-cbm FSUs will be towed to Bechevinskaya Bay in Kamchatka and Ura Bay at Murmansk.
MOL said it has been supporting the construction from the technical and engineering perspective, in particular the basic design, plan approval and site supervision works.
“By transporting LNG via [the] Northern Sea Route and by transshipping at Kamchatka and Murmansk, it is expected to reduce voyage costs and greenhouse gas emissions,” the shipowner said.
In addition, the company added that securing LNG at a location close to a point of consumption is believed to increase security and reliability of energy supply.
Stable supply
MOL believes the deal helps to ensure a stable energy supply to Japan.
TradeWinds has reported that the Murmansk facility is likely to come onstream first, as it is less remote and simpler to put into operation.
The Kamchatka complex was due to be operational by 2023, in advance of Russia’s plans to open up the NSR for year-round shipping from 2025.
But Russian players have said this is ambitious, as more powerful ice-breaker capacity would need to be available in advance of its start-up.
The location of the FSUs would allow Novatek to maximise its use of 15 Arc7, ice-breaking LNG carriers, which could then ply the waters between its existing and upcoming liquefaction plants on the Yamal and Gydan peninsulas and strategically located FSUs.
