Sovcomflot, Shell enter into time-charter contract for two LNG carriers
At the XVI St. Petersburg International Economic Forum Russia’s Sovcomflot, the world’s largest operator of ice class vessels, signed an agreement to provide Shell will the use of two modern LNG carriers on the basis of a long-term time charter, the Russian shipping company press release said.
The agreement was concluded following a tender process, which resulted in Shell International Trading and Shipping Company (STASCO) choosing SCF Sovcomflot’s gas-carriers for the transportation of its LNG by sea.
The vessels have been ordered at STX Offshore & Shipbuilding (South Korea) and will be built with the participation of JSC United Shipbuilding Corporation (JSC “USC”). The first tanker is due to be commissioned in late 2014 and the second vessel in early 2015. The involvement in the project of Russian shipbuilders will facilitate the establishment of the domestic production of sophisticated, higher value ships in Russia (e.g. at Novye Admiralteyskie verfi, Kotlin island) and will provide for the future specialised gas carrier needs of Russian oil & gas companies, for work on the continental shelf, in order to develop Arctic and Subarctic offshore fields. Shell will play an active role in the allocation of gas-carriers to serve Russian production, something which is covered by the agreement previously signed between Shell, SCF and USC during last year’s XV-th St. Petersburg International Forum. Today’s agreement between SCF and Shell also provides for a broadening in the range of domestic components and other equipment to be used in the construction process.
Sovcomflot’s President & CEO Sergey Frank said: “We are truly honoured to have seen our bid win the tender organised by the global energy major, Shell. We have enjoyed our earlier experience of mutual cooperation and this contract builds upon our previous joint engagements. The team from Sovcomflot put enormous effort into winning this contract, using their expertise and knowledge of LNG transportation. We are also pleased that the solution offered by Sovcomflot was not only competitive, but also important for Russia’s shipbuilding industry. The agreement provides the possibility for gas-carriers of a unique and technically advanced design to be built in Russia. This project is also fully in line with SCF’s development strategy. I’m confident that SCF’s many years of experience in the safe and effective operation of gas-carriers will be attractive to all oil & gas companies working on the continental shelf of Russia”.
Grahaeme Henderson, Vice President of Shell Shipping, said: “Liquefied Natural Gas (LNG) has a very important role to play in meeting global energy demand. Today, Shell and Sovcomflot are bringing together our collective LNG, shipping and arctic expertise to devise the next generation of LNG tanker. These new ships will help supply LNG to international markets and support Shell’s LNG growth strategy.”
Vessel’s technical details:
The Atlanticmax Ice2 class (as per the Russian Maritime Register of Shipping) design (ca 170,000 cubic metres with a tri-fuel diesel electric power plant) with process equipment for low temperature conditions is a follow-on from an LNG carrier designed with the involvement of JSC USC and Gazprom Global LNG. The design reflects the latest requirements with respect to environmental and energy efficiency criteria, crew work, rest and safety conditions.
The vessels will be able to load gas from most existing LNG export terminals, including the facilities of Sakhalin-2, the first Russian LNG project, where Shell is a shareholder. The carriers will also be optimised to operate at the new Floating LNG facility in Australia (Prelude FLNG project), which is currently under construction for Shell.
The cargo system (reinforced membrane structure) is compliant with the requirements for harsh climate operations and has been jointly tested by experts from the Russian Maritime Register of Shipping (RMRS) and Krylov R&D Institute. GTT, the designer of the cargo system, together with JSC USC and STX are looking to introduce additional changes to the membrane’s design to achieve further reductions in the evaporation of transported gas to 0.12% per day, whilst maintaining the vessel’s high speed performance.
Beside cooperation with the Russian shipbuilder JSC USC, the project also envisages the use of a wider array of Russian made materials, equipment and parts. Shell will take an active part in developing the local content for building the LNG tankers, as provided by the agreement signed between Shell, SCF and USC at St.Petersburg International Economic Forum in June 2011.
SCF Group (OAO Sovcomflot) – is one of the world’s leading shipping companies and transporters of oil products and liquefied gas. Its fleet comprises 157 vessels with the aggregate deadweight of some 12 million tonnes. The company is registered in St.Petersburg with offices in Moscow, Novorossiysk, Murmansk, Vladivostok, London, Limassol, Madrid and Singapore.
