Sovcomflot Board of Directors Approves Orders for Three LNG-Fuelled MR Product Tankers
The first meeting of PAO Sovcomflot’s Board of Directors this year, incorporating new members, was held on 23 July 2019.
Guided by a Directive of the Russian Government, the company’s Board of Directors approved transactions with Zvezda Shipbuilding Complex (Primorsky Region) and a subsidiary of JSC VEB Leasing to place orders for the construction of three new-generation MR product carriers using LNG as their main fuel. The vessels will be chartered to a subsidiary of PJSC NOVATEK under twenty year time-charter agreements.
Sergey Frank, President and CEO of Sovcomflot, says:
“We are grateful to PAO Sovcomflot’s shareholder and our partners PJSC NOVATEK and VEB.RF for supporting SCF’s environmental initiative that provides for the gradual transfer of our large-capacity tanker fleet to using more environmentally safe LNG fuel. The introduction of “green” technologies for energy shipping is one of the priorities provided for by the development strategy of our company for the period up to 2025. The company already successfully operates a series of the world’s first Aframax-class tankers to use LNG fuel. Five more of SCF’s “green” series vessels will be built at Zvezda Shipbuilding Complex and put into operation from 2022 to 2023.”
Igor Tonkovidov, Executive Vice President and CTO/COO of Sovcomflot, said:
“In 2022, our company will accept the world’s first product carriers operating on with LNG fuel. We welcome the localisation of new civil shipbuilding technologies that envisage the manufacturing of advanced marine equipment in Russia, the operation of which will help reduce the environmental footprint of humanity. I am confident that the serial construction of new-generation LNG-fuelled large-capacity vessels at the facilities of Zvezda Shipbuilding Complex will contribute to strengthening the leadership and increasing the competitiveness of Russian shipping companies in the world market.”
Sovcomflot is involved in servicing large oil and gas projects in Russia and around the world: Sakhalin-1; Sakhalin-2; Varandey; Prirazlomnoye; Novy Port; Yamal LNG, and Tangguh (Indonesia). The company is headquartered in Saint Petersburg, with offices in Moscow, Novorossiysk, Murmansk, Vladivostok, Yuzhno-Sakhalinsk, London, Limassol, and Dubai.
‘Green Funnel’ series of SCF large-capacity tankers. Currently, SCF Group has six LNG-fuelled crude oil tankers of Gagarin Prospect type in operation (114,000-dwt, Arc4 ice class). In 2019, Gagarin Prospect, the lead ship in the series, won the international Marine Propulsion Award for Ship of the Year 2018 and Nor-Shipping Next Generation Ship Award 2019.
In April 2019, Sovcomflot also won an annual Marine Money award. This was for the loan agreement with a consortium of foreign banks to finance the construction of a series of LNG-powered large-capacity crude oil tankers. The transaction was recognised as the Deal of 2018 in the Green Ship Finance – West category. Sovcomflot became the first winner of this award.
In December 2018, SCF Group won a Lloyd’s List Global Award-2018 in the Environmental Award – Individual Company category for its initiative to introduce LNG as a primary fuel for large-capacity tankers.
During the second half of 2018, Sovcomflot placed orders at Zvezda for five LNG-fuelled tankers, which will be time-chartered to Rosneft and Novatek once delivered. In addition, Sovcomflot provides technical supervision for the construction of five LNG-fuelled tankers for Rosneft at Zvezda, and it is envisaged that Sovcomflot will provide technical management of these tankers following their delivery.