DSME cancels third LNG carrier order linked to Sovcomflot

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

This is the third and final LNG carrier linked to an order by Russia’s Sovcomflot. DSME announced the termination of the contract for the first ship in May and for the second in June.

DSME said in a stock exchange filling on Friday that 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 and scheduled for delivery by July 2023.

DSME said in the filling it had notified the European owner of the termination of the contract for one LNG carrier worth 337.9 billion won.

The shipbuilder said that due to export control on Russia, supply of major equipment and materials had been delayed or suspended, making it impossible to build the ship.

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 previously said that the termination of the first contract in May and the second in June was related to the three Sovcomflot vessels as the Russian firm had been hit by sanctions.

Most Popular

Glenfarne still expects Texas LNG FID by end of this year

US energy firm Glenfarne confirmed it is targeting a final investment decision on its planned 4 mtpa Texas LNG export project in the port of Brownsville by the end of 2025 after the US FERC issued the final supplemental environmental impact statement for the project.

Kosmos: Tortue FLNG to hit full capacity in Q4

UK-based energy giant BP and its partners expect the 2.7 mtpa Golar FLNG Gimi, which serves the Greater Tortue Ahmeyim LNG project offshore Mauritania and Senegal, to reach its nameplate capacity in the fourth quarter of this year, according to US-based Kosmos Energy.

Equinor’s Hammerfest LNG back online after maintenance

Norwegian energy firm Equinor has resumed operations at its 4.3 mtpa Hammerfest LNG export plant following an extended maintenance shutdown, a spokesperson for Equinor told LNG Prime on Monday.

More News Like This

Hanwha Ocean says recovery in LNG newbuild market led by US projects

South Korean shipbuilder Hanwha Ocean expects the recovery in the LNG newbuilding market to be led by US export projects and the phase-out of steam LNG carriers.

Yang Ming books LNG-powered containerships in South Korea

Taiwan’s Yang Ming Marine Transport has decided to order LNG dual-fuel container vessels from South Korea's Hanwha Ocean as part of its ongoing fleet optimization plan.

Hanwha Ocean to buld Korean LNG-powered icebreaker

South Korean shipbuilder Hanwha Ocean has secured a contract to build one LNG dual-fuel research icebreaker.

Samsung Heavy cancels LNG carrier contract with Russia’s Zvezda

South Korean shipbuilding giant Samsung Heavy Industries has terminated contracts for 10 ice-class Arc7 LNG carriers and seven shuttle tankers with Russia's Zvezda.