Arctic LNG 2 to receive Arc7 carriers in phases

Russia's Arctic LNG 2 project is set to receive the 10 recently ordered Arc7 ice-class LNG carriers in two phases, likely to meet loading demand as the second and third trains at the project are commissioned.

The first group of five carriers is slated for delivery in September-December 2024 and the second in September-December 2025. The deliveries are likely to have been aligned with the expected commissioning and ramp-up phases for the second and third trains at the Novatek-led 19.8mn t/yr Arctic LNG 2.

The second group would be delivered ahead of the planned third train start-up in 2026. But the late 2024 delivery for the first group, with the second train slated for a 2024 start-up, could tighten the project's shipping capacity, depending on how quickly the liquefaction train ramps up production.

Five other Arc7 carriers, also ordered by Smart LNG — a joint venture between Russia's state-owned Sovcomflot and compatriot gas producer Novatek — in 2019-20, are scheduled for delivery in March-December 2023, likely to meet loading demand from the first Arctic LNG 2 train that year.

All 15 carriers have been ordered from the Rosneft-led Zvezda shipyard, in Russia's far east.

The second and third 5.5mn t/yr trains at Novatek's first liquefaction project — the 16.5mn t/yr Yamal LNG project — were commissioned and ramped up production well ahead of the initial schedule, leading the project to request early delivery of its ordered Arc7 carriers in the face of tight shipping capacity.

That said, the Arctic LNG 2 project, together with Smart LNG, could still order more Arc7 carriers. Up to 10 carriers could be ordered from South Korean or Chinese shipyards, Novatek chief financial officer Mark Gyetvay said in January. These could be delivered earlier in 2024, to meet loading demand from the second train.

By Samuel Good