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    Zvezda Yard Cuts Steel for First Russian LNGC

Summary

It will be Russia's first domestically-produced LNG carrier.

by: Joe Murphy

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Natural Gas & LNG News, Europe, Liquefied Natural Gas (LNG), Premium, News By Country, Russia

Zvezda Yard Cuts Steel for First Russian LNGC

The Zvezda shipyard in the Russian Far East announced on November 20 it had started cutting steel for what will be the country's first domestically-produced LNG carrier (LNGC).

Zvezda has received orders for a fleet of 15 Arc7 LNGCs that will serve the Novatek-led Arctic LNG-2 project in the Russian Arctic. Financing for their construction was finalised in September.

The vessels have a 300-m length and 48.8-m width, and have a storage capacity of 172,600 m3. Their primary fuel is LNG. They are designed for harsh climatic conditions, capable of independently breaking through ice more than 2 m thick.

They also feature 45-MW power generation units and sets of three rudder propellers, produced in Bolshoy Kamen, by a joint venture between Russia's Rosneft and General Electric. Rosneft is also a shareholder in Zvezda, alongside state entities Rosneftegaz and Gazprombank.

Zvezda is playing a key role in Russia's efforts to build up its domestic shipbuilding industry and reduce reliance on foreign yards. It has received for 50 vessels in total, of which 28 were placed by Rosneft. Besides LNGCs, it is also building oil tankers.

Novatek's Arctic LNG-2, whose investors also include France's Total, China's CNPC and Cnooc and Japan's Mitsui and Jogmec, is due to come on stream in 2023 and produce 19.8mn metric tons/year of LNG at full capacity.