Zvezda Hires Samsung for LNGC Designs

The Zvezda shipyard in the Russian Far East has signed a contract with South Korea’s Samsung Heavy Industries (SHI) on the design of LNG carriers.

The vessels will be used to transport cargo from the 19.8mn mt/yr Arctic LNG-2 project, state oil company Rosneft, a partner in the Zvezda yard, said in a press release on September 4. Under the contract, signed at the Eastern Economic Forum in Vladivostok, SHI will serve as Zvezda’s technology partner to develop the ships.

Novatek, the private operator of Arctic LNG-2, reserved Zvezda’s production capacity for a series of LNG carriers last year, Rosneft said. In April, Zvezda and state shipping group Sovcomflot struck a deal to construct a pilot gas carrier.

LNG carriers have never before been built in Russia. According to Rosneft, the planned vessels are capable of moving through ice up to 2.1 metres thick, are equipped with a 45-MW power unit, and use LNG as fuel.

Under another deal signed at the Vladivostok forum, Novatek and Sovcomflot have agreed to set up a joint venture to build and operate LNG carriers for use in the Arctic.

Russia is engaged in a major programme of onshoring technology, so that it will be safe from sanctions. The US and European Union sanction in 2014 led to a number of projects stalling, including ExxonMobil's venture with Rosneft to develop Kara Sea oil. Novatek is also working on LNG technology.