Arc7 LNG carrier order cancelled

An order for an Arc7 ice-class LNG carrier has been cancelled after the shipowner that placed the order - understood to be Russia's Sovcomflot - missed a payment deadline.

The cancelled newbuild vessel is one of three LNG carriers ordered at South Korean shipbuilder Daewoo Shipbuilding and Marine Engineering (DSME) in October 2020, the shipbuilder said today. The orders for the other two carriers remain in place.

The order had subsequently been tied to Sovcomflot by Russian developer Novatek, which planned to use the three vessels to load LNG at its planned 19.8mn t/yr Arctic LNG 2 liquefaction project. Japanese shipowner Mitsui OSK Lines also ordered three Arc7 carriers for use with the planned Russian liquefaction facility.

Sovcomflot's three Arc7 carriers ordered at DSME were scheduled for delivery in February, April and July 2023.

The shipowner's LNG carrier orderbook is made up mainly of Arc7 vessels ordered at the Rosneft-led Zvezda shipyard in Russia's far east. But Sovcomflot has also ordered three LNG carriers with South Korean shipbuilder Hyundai Samho Heavy Industries. The three carriers - named after French writers Jules Verne, Alexandre Dumas and Victor Hugo - are scheduled for delivery in April 2023, February 2024 and August 2024, respectively.

Sovcomflot has faced several financial and operational issues in recent months, stemming from sanctions placed on the firm earlier this year, with half of its 12-strong LNG fleet still idle as of late April. Four LNG carriers, all sailing under term charters with Shell, have reportedly been sold to another shipowner, although this could not be confirmed. That said, all four have since changed their names.

By Samuel Good