Novatek is combing through bids from shipowners for a series of LNG carrier newbuildings needed for the next round of exports from its Arctic LNG 2 project.
Those following the business to provide the ice-class 1A Arc4 LNG carriers to the Russian energy company said they expect between five and seven parties to be shortlisted, from an initial 15 or more.
Novatek is slated to select its preferred bidders by the end of this month, they said.
But one source said it is unclear whether the deadline can be met.
The likely number of owners is blurred because some are offering in alone while others have teamed up in consortia.
Tipped
Russian shipowner Sovcomflot (SCF Group) is rumoured to be partnered with Japan’s NYK Line and is among those tipped to be well-placed.
Sources said they anticipate one of South Korea’s big-three shipbuilders — possibly Hyundai Heavy Industries or Samsung Heavy Industries — is expected to win up to four newbuildings.
Berths for a further trio are understood to have been pencilled in at China's Hudong-Zhonghua Shipbuilding (Group), which are linked to LNG sales deals to China.
Novatek, which is seeking 2023 delivery dates on the ships, is due to make a prompt decision on the business and indicated it will make a final call on the newbuildings in August.
Shipyards made technical and commercial offers to those bidding in April.
But steel price rises have soared in the interim and berth slots for 2023 deliveries are scarce at the major yards following the recent boom in containership ordering.
Novatek originally asked about 15 shipowners for offers on four firm vessels and two optional ships.
Observers have expressed concerns that international bank financing for ships chartered to a Russian entity may prove difficult to secure.
The gas company plans to use lower ice-class tonnage than the specialised ice-breaking fleet of Arc7 LNG carriers it contracted for its Yamal LNG project as it ramps up its production with a second project, the 19.8 million tonnes per annum Arctic LNG 2.
These new Arc4 vessels will take on cargoes transshipped from two giant floating storage units that will be installed near Murmansk, in the west, and Kamchatka, at the eastern end of the Northern Sea Route.
This will leave the Arc7 fleet of 15 existing vessels and 21 newbuildings, 15 of which are being constructed at Russia’s Zvezda Shipyard Complex, to ship cargoes through the Arctic route's more challenging icy waters.
Presidential chat
Novatek is building up a sizeable chartered LNG fleet that looks set to top 50 vessels by 2023.
At a meeting with Russia's President Vladimir Putin this month, Novatek chairman Leonid Mikhelson updated the premiere on the company's development plans.
He told Putin: “Our plans for 2024 to 2030 are to produce four more liquefaction trains with a total capacity of over 26 million tonnes."
Mikhelson said this will require Zvezda to build about five tankers each year, or 26 to 30 tankers, by 2030.
