Russian gas giant Novatek has signed a tentative deal with the Zvezda shipbuilder, based in Russia's Far Eastern region, to build 14 gas carriers, the Russian Ministry of Industry and Trade told Sputnik on Friday
MOSCOW (Pakistan Point News / Sputnik - 11th January, 2019) Russian gas giant Novatek has signed a tentative deal with the Zvezda shipbuilder, based in Russia's Far Eastern region, to build 14 gas carriers, the Russian Ministry of Industry and Trade told Sputnik on Friday.
"In December 2018, Novatek signed a preliminary agreement with SSK Zvezda for the construction of 14 gas carriers, envisaged by the prospective plan for the use of shipbuilding complex," the ministry said.
The gas company confirmed the agreement and noted that it expected to acquire the ships at global market prices.
"Novatek expects companies to order gas carriers from Zvezda at global market prices. There is a Russian government decision to support the Zvezda shipyard in order to localize the production of ships in Russia. The Russian Ministry of Industry and Trade alongside the Far Eastern Shipbuilding and Ship Repair Center have been entrusted to determine the scope and form of this support. It should be noted that this is one of the conditions for the signing of contracts by shipowners," Novatek's spokesperson said.
Sovcomflot, Russia's largest shipping company, might be granted charter rights for the vessels. The bidding process for charter rights is ongoing, the company noted.
According to the Russian Kommersant newspaper, the deal envisages construction of the gas carriers of the Arc7 ice class for the Arctic LNG 2 project, and each will cost around $316 million to 318 million.
