DSME cancels second LNG carrier order linked to Russia’s Sovcomflot

South Korean shipbuilding giant Daewoo Shipbuilding and Marine Engineering said it has terminated an order for another LNG carrier after a European shipowner missed the payment deadline.

This follows a cancellation for one out of three LNG carriers in May tied to an order by Russia’s Sovcomflot.

DSME said in a stock exchange filling this order is related to a contract it had won in October 2020.

The contract worth about 1.1 trillion won ($872 million) included three LNG carriers with the unidentified European owner.

Under the deal, the shipbuilder had planned to deliver all of the three vessels by July 2023.

Following the cancelation of contracts for two vessels, DSME said the order for one LNG carrier remains in place. The single vessel contract now has a price tag of about 337.9 billion won.

Back in October 2020, DSME secured orders for six LNG carriers worth about 2.2 trillion won.

Novatek’s Arctic LNG 2 project entered into long-term charter agreements for these Arc7 ice-class LNG tankers with Sovcomflot but also Japan’s MOL.

Brokers and shipbuilding sources said that the termination of the first contract in May was related to one of the three Sovcomflot vessels as the Russian firm had been hit by sanctions.

Most Popular

Cheniere to start site preparation for two more Corpus Christi LNG trains

US LNG exporting giant Cheniere is seeking approval from the US FERC to start site preparation activities for two more midscale trains at its Corpus Christi LNG plant in Texas.

Woodside names Sarah Bairstow as Louisiana LNG head

Australian LNG player Woodside has appointed Sarah Bairstow to lead its Louisiana LNG project.

LNG shipping rates continue to decrease

Spot LNG freight shipping rates in both basins continued to decrease this week, while European prices increased compared to last week.

More News Like This

Hanwha Ocean starts work on Nakilat’s LNG carrier

South Korean shipbuilder Hanwha Ocean has officially started building Nakilat's first of eight LNG carriers under the massive QatarEnergy shipbuilding program.

Hanwha Ocean delivers 200th LNG carrier

South Korea's Hanwha Ocean has delivered its 200th liquefied natural gas (LNG) carrier.

Evergreen orders LNG-powered vessels in South Korea and China

Taiwan's shipping firm Evergreen Marine has ordered ultra-large LNG-powered containerships at two yards in South Korea and China.

Hapag-Lloyd to add more LNG-powered containerships to its fleet

Germany's Hapag-Lloyd is expected to add more LNG dual-fuel container vessels to its fleet with a new order at South Korea's Hanwha Ocean, according to shipbuilding sources and brokers.