Russian Sovcomflot to Operate Sanctioned Zvezda Arc7 LNG Carrier for Arctic LNG 2
Aleksey Kosygin at the Zvezda shipyard with the SCF (Sovcomflot) logo applied to the hull. (Source: Zvezda)
Despite mounting Western sanctions Russia’s largest shipping company Sovcomflot appears set to operate ice-capable LNG carriers for Arctic LNG 2 currently under construction in Russia. New photos show the SCF logo being painted on the side of the lead vessel, Aleksey Kosygin.
Russia’s Zvezda shipyard continues to make progress on completing the initial ice-capable Arc7 liquefied natural gas carriers for the sanctioned Arctic LNG 2 project.
In total it received five hulls from South Korean Samsung Heavy Industries but has struggled to complete the final build-out, including the LNG membrane and azimuth propulsion units.
Work on the Aleksey Kosygin continues in Zvezda’s drydock and earlier this week the carrier received a new paint job applying the Sovcomflot (SCF) logo on the side of the vessel, recent photos show.
Production shut down
Initially the first Zvezda Arc7 was supposed to be commissioned before the end of the year, with a second one following in early 2025.
A second carrier, likely Sergei Witte, recently relocated within the shipyard’s harbor under its own power confirming ongoing activity and progress toward commissiong the initial batch of vessels.
Would do little to entice buyers to offtake sanctioned loads.
Production at Arctic LNG 2 is currently shut down due to a lack of ice-class tankers and the project’s inability to find buyers for the eight cargoes it produced and exported in August and September.
Delivery of one or two Arc7 vessels would alleviate some logistical concerns for Novatek, but would do little to entice buyers to offtake sanctioned loads.
Cool down cargoes for Zvezda Arc7
Three LNG carriers, Pioneer, Nova Energy, and East Energy, all loaded with supercooled gas from Arctic LNG 2, remain in Nakhodka in Far Eastern Russia. The port’s bay provides sheltered waters after months at sea.
Boiloff, the loss of gas through evaporation, is becoming an issue after more than three months at sea losses have reached around 15-20 percent. With loadings valued at around $40m the monthslong odysseys have become a costly adventure for Novatek.
Industry insiders suggest the company may be looking to use part of the LNG on the three LNGC as cool down cargoes for any Zvezda Arc7 carriers being launched in the coming weeks. This would allow Novatek to salvage some of the cargo.
Limited access
The tanks and lines of LNG carriers have to be cooled down gradually when entering into service before they can receive any cargo. Traditionally a cargo tank cool down would be carried out at a shore terminal.
But with the Zvezda vessels being sanctioned their access to land based facilities will be limited, supporting speculation that undelivered LNG from the three LNGC at Nakhodka will be used for the process.
In addition to work at Zvezda, construction at Arctic LNG 2 also continues. Delivery of the Wison onshore power plant wrapped up last week allowing Novatek to commission the second train of the project in the coming weeks.
The company has ramped up the hiring of electric gas welders, electricians, power engineers, concreters, among others for 60 and 90-day contracts at the Utrenniy terminal, highlighting its continued efforts to complete the project as originally designed.
