Japan’s NYK Line is in the process of taking over the contracts for four ice-class LNG carrier newbuildings contracted jointly with Russia’s Sovcomflot (SCF Group) at Samsung Heavy Industries in South Korea.
Brokers said NYK agreed several weeks ago to take on the contracts for four firm 174,000-cbm, ice-class 1A or Arc4 LNG carriers, which were ordered jointly by the two companies at the end of September 2021.
Clarksons’ Shipping Intelligence Network database details that the ships, which are to be fitted with low-pressure X-DF propulsion systems, were priced at $202.9m each when they were contracted. At the time, SHI’s exchange announcement valued them at $202m apiece.
SIN lists the ships as scheduled for delivery in September and November 2023 with the sister vessels to follow in January and April of the following year.
All four LNG carriers, which are to be fitted with on-board reliquefaction units plus shaft generator systems, were originally contracted against long-term time-charter contracts with Russian energy company Novatek’s Singapore-based trading arm subsidiary Novatek Gas & Power Asia.
When they were ordered the two shipowners also pencilled in an optional pair of newbuilding slots.
Both NYK and Sovcomflot, which have worked closely together on LNG for several years, were contacted for comment on these newbuildings.
In response, Sovcomflot said it had no comment to make.
At the time the NYK-Sovcomflot joint venture inked its newbuilding contracts, Japan’s Mitsui OSK Lines made a mirror order for vessels for its own account at Daewoo Shipbuilding & Marine Engineering. These four ships are also backed by Novatek Gas & Power Asia charters.
Sovcomflot has been shedding its LNG carrier newbuildings in the wake of the sanctions placed on Russian entities following Russia’s invasion of Ukraine in February.
Yard are unable to complete these vessels, as some subcontractors for key parts on the ships are unable to work with and accept payments from Russian companies.
Two out of three LNG newbuildings contracted by the Russian owner directly at DSME have been cancelled.
In July, it emerged that three vessels ordered by Sovcomflot at Hyundai Samho Heavy Industries against long-term time-charters with TotalEnergies had been sold to Anna Angelicoussis-led Greek shipowner Alpha Gas.
The shipbuilder’s parent company Korea Shipbuilding & Offshore Engineering said it had sold three LNG carrier newbuildings that had been cancelled by their owner without naming the shipping company concerned.
KSOE said one vessel was sold for KRW 314bn ($240m) and a new contract was signed on the other two for KRW 628.2bn, equating to about $239m each.
