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Zvezda Shipyard Awards Contract for Construction of 10 Liquefied Gas Tankers for Arctic LNG 2 Project

25 September 2020

The Zvezda Shipbuilding complex signed a contract for the construction of ten Arc7 ice-class liquefied gas tankers. The vessels will be built in interests of PJSC Novatek for the Arctic LNG 2 project. VEB.RF will provide funding for the construction of new ships. The Zvezda Shipyard and the companies of the VEB.RF group signed contracts for the construction of five Arc7 ice-class gas carrier vessels for liquefied gas transportation in complicated ice conditions of the Northern Sea Route in late 2019--early 2020. Thus, the total amount of tankers for the Arctic LNG 2 project in Zvezda's portfolio increased to 15 vessels. The tankers will be used for long-term time charter contracts between SMART LNG LLC (a subsidiary of Sovcomflot Group and Novatek) and Arctic LNG 2 LLC (a subsidiary of Novatek).

The construction of gas carrier vessels of Arctic class is one of the most technologically complex processes in the global shipbuilding industry. The Zvezda Shipyard Complex implements these projects with the equipment unique to Russian shipyards and with advanced world-class technologies. Start of production of this type of vessels, a unique event for Russian shipyards, is one of the priority areas of the production programme of the Zvezda Shipyard.

The gas carrier's design allows it to individually pull through the ice of up to 2 metres thick. The capacity of the gas carrier's power station is 45 MW. The length of the vessel is 300 m, width 48.8 m, capacity of LNG cargo tanks 172,600 m3. These vessels feature increased environmental safety; they use liquefied natural gas (LNG) as their primary fuel.

The start of construction of the first tanker is scheduled for late 2020.

Currently, the construction of 21 vessels of different types with further leasing at the Zvezda Shipyard is being funded under the agreements with VEB.RF.

The Zvezda Shipbuilding Complex is constructed by the Rosneft-led Consortium upon the instruction of President of Russia Vladimir Putin. At the moment the Shipyard's order portfolio amounts to over 50 vessels - 59 vessels including options. The Shipyard's pilot throughput is provided for by Rosneft that placed an order for 28 vessels. Zvezda’s product line will include vessels of up to 350 tonnes displacement, components of marine platforms, ice-class vessels, commercial vessels for cargo transportation, specialty vessels, and other types of marine equipment of any complexity, characteristics and purposes, including those that had not previously been produced in Russia due to the lack of required launching and hydraulic structures.

Note for Editors:

In July 2020, Zvezda Shipbuilding Complex was awarded an international license and became the first Russian shipyard that can build LNG carriers with a membrane storage system. The shipbuilding complex has signed a technical assistance and licencing agreement (TALA) with the French engineering company Gaztransport & Technigaz (GTT), specializing in the development and licencing of the construction of cryogenic membrane systems for liquefied gas transportation and storage. A prototype LNG tank was manufactured at the Zvezda Shipyard as part of the preparatory work for the construction of gas carrier vessels. The work was completed on time with all technological standards observed, thereby confirming the high competencies of the engineering staff of the Zvezda Shipyard Complex.

The Russian Federation had not ever manufactured such vessels and had been purchasing them abroad for many years.

The construction of Zvezda is carried out in two stages. The following facilities of the first extended stage have been put into operation: the hull production block, painting cabinets, the open heavy outfitting slipway equipped with a park of unique cranes and a state-of-the-art ship transportation system, and the floating transfer dock.

The workshops built enabled the construction of a number of ships before the completion of the second stage. Commissioning of the second stage will expand the shipyard's capabilities and allow Zvezda to build vessels and marine equipment without any limitations. The second stage comprises the following: a dry dock and additional full-cycle production shops for construction of large-capacity vessels and marine equipment. The shipyard overall completion is scheduled for 2024.

Zvezda's product line includes tankers, gas carriers, drilling platforms, and ice class ships, including the world's most powerful nuclear icebreakers, the Leaders. The Zvezda Shipbuilding Complex will rival foreign shipyards and provide Russia with a civilian fleet to develop offshore fields and smoothly operate the Northern Sea Route--the shortest route between Europe and Asia.

Rosneft
Information Division
September 25, 2020

Keywords: Environmental News 2020