Novatek to build up to 10 Arc 7 carriers abroad

Russian producer Novatek has received permission from the government to build up to 10 Arc 7 ice-class LNG carriers at foreign yards, chief financial officer Mark Gyetvay says. The firm received a similar exemption for its first project, the 16.5mn t/yr Yamal LNG facility, for which South Korea's Daewoo Shipbuilding and Marine Engineering built 15 Arc 7 vessels. Changes to Russia's merchant shipping code banned foreign-flagged and built vessels from carrying hydrocarbons along the Northern Sea Route, suggesting orders would have to be placed with Russian yards, which might have been hard-pressed to supply the 19.8mn t/yr Arctic LNG 2 project with all the vessels required, given that no Russian yard has ever built an LNG carrier. All previous Arc 7 LNG tankers were built in South Korea. Arctic LNG 2's first train is due on line in 2023 — with trains 2 and 3 following in 2024 and 2026 — Gyetvay said, suggesting the vessels will have to be delivered by 2023.