LNG

Jan 25 (LNGJ) - The Russian-owned LNG carrier “SCF La Perouse” is scheduled to deliver a US LNG cargo on January 25 from the Cameron plant in Louisiana to the UK Isle of Grain import terminal, located on the Medway River southeast of London. The 174,100 cubic metres capacity Liberian-flagged vessel, owned by Sovcomflot, lifted the US cargo from the plant near Lake Charles on January 13, according to shipping data.

   The LNG shipment was headed for the UK as the nation’s benchmark National Balancing Point natural gas price rebounded to the equivalent of $30.35 per million British thermal units on colder weather and supply concerns.

Sovcomflot, the Russian shipping line with 31 gas carriers in operation or on order and an overall fleet of 145 vessels, posted a more than 18 percent jump in annual net profits as revenues also increased.

French energy company Total along with South Korean shipbuilder Hyundai Heavy Industries and Russian fleet operator Sovcomflot have concluded a deal with options as the build-out continues on the next generation of LNG vessels.

As part of the global fleet expansion, Sovcomflot and Total have concluded a time-charter agreement for up to seven years for a newbuilding LNG carrier with capacity of 174,000 cubic metres to be owned and operated by Sovcomflot, with options for up to two additional vessels.

A Web conference was held to mark the event attended by Igor Tonkovidov, President and Chief Executive Sovcomflot, Thomas Maurisse, Senior Vice President for LNG at Total and Seong-Yong Park, Senior Executive Vice President and Chief Operating Officer at HHI.

The new vessel will be the latest in a series of SCF’s new-generation conventional Atlanticmax LNG carriers, with three sister ships already in operation, the “SCF La Perouse”, the “SCF Barents” and the “SCF Timmerman”.

“The vessel will be fitted with an X-DF propulsion system, operated by a slow-speed diesel engine with a direct drive to the propellers, which will enable a substantial reduction in the vessel’s fuel consumption when compared with previous generations of LNG carriers,” the companies explained.

“The new carrier will also be fitted with a hull air lubrication system which, combined with two shaft power generators with frequency-to-current converters, is expected to deliver a further significant decrease in fuel consumption and greenhouse-gas emissions,” they added.

Another environmental feature of this series of new-generation LNG vessels is a partial re-liquefaction system, which allows cargo boil-off gas to be returned to the tanks.

Delivery of the carrier to the charterer is scheduled for the third quarter of 2023.

“We are pleased that SCF Group’s shipbuilding programme will be supplemented with a new gas carrier that meets all the current international standards regarding environmental protection, as well as the Charterer's requirements for energy efficiency, quality and navigational safety,” said Sovcomflot’s Tonkovidov.

“We are grateful to our valued partners at Total for the opportunity to participate in this interesting project which extends further our cooperation in LNG transportation with one of the world’s leading international energy companies,” added Tonkovidov.

“The success in Total’s project tender once again demonstrates SCF’s high standards and capabilities in LNG shipping as well as with other types of energy,” stated the Russian company’s CEO.

He added that the continued development of energy transportation services that serve long-term projects provide a fixed return element to the shipping line’s business model.

“It is in line with the corporate strategy approved by our shareholders and allows us to reduce the negative impact of conventional tanker freight market fluctuations on the Company’s results,” Tonkovidov concluded.

The Russian shipping line is now listed on the Moscow stock exchange after an initial public offering in October 2020. 

Sovcomflot, the Russian shipping line with 31 gas carriers in operation or on order in an overall fleet of almost 150 vessels, has taken delivery of its latest LNG carrier “SCF Barents”, chartered to Royal Dutch Shell and named after the 16th-century Dutch Arctic explorer Willem Barents.

The ship with capacity of 174,000 cubic metres was handed over at the Hyundai Heavy Industries shipyard in South Korea.

After the vessel’s naming ceremony, it embarked on its maiden voyage under a long-term time charter agreement with one of Shell’s subsidiaries.

Sovcomflot President and Chief Executive Igor Tonkovidov, attended the ceremony along with Cederic Cremers, Chairman of the Shell subsidiary in Russia.

Also representatives at the event were the executives of the three European banks which provided the shipping finance, ING Bank of the Netherlands, France’s Crédit Agricole and KfW IPEX-Bank GmbH of Germany.

Shell executive Catherine Hall, the General Manager of Global Operations and Commercial Services at Shell Trading & Supply was the vessel’s sponsor at the ceremony.

“SCF Group and Shell have enjoyed a long-standing partnership, which both parties seek to consistently expand and reinforce,” said CEO Tonkovidov of Sovcomflot, also known as SCF Group.

“For many years, Shell has been amongst the largest charterers of SCF’s vessels,” he added.

“The delivery of ‘SCF Barents’ is important as growing our fleet of gas carriers is a strategic priority for SCF,” stated Tonkovidov.

“With the delivery, we now have 15 gas carriers in operation, with another 16 under construction. Thus, two-thirds of all vessels currently ordered by SCF are destined to expand our gas fleet,” he explained.

The “SCF Barents” is the second vessel in a series of three with 174,000 cubic metres capacity in the new-generation Atlanticmax series ordered by SCF in 2018.

The first vessel of the series, “SCF La Perouse”, was delivered in February 2020.

“All vessels in the series are designed to maximise their energy efficiency and meet the most stringent environmental standards, with their fuel consumption substantially reduced compared to the preceding generation of vessels,” said SCF.

“Each LNG carrier is equipped with an advanced Mark III Flex cargo containment system, slow-speed dual-fuel X-DF engine, and a system that reduces nitrogen-oxide emissions while the vessel sails in liquid fuel mode,” the shipping line added.

“In addition, all vessels of the series are among the first globally to feature a boil-off gas partial re-liquefaction system, which significantly reduces cargo losses while on long voyages or awaiting cargo operations,” said SCF.

SCF is developing into one of the world’s premier energy shipping companies, specialising in crude oil, petroleum products and liquefied gas, as well as the servicing of offshore oil and gas production.

The Group’s fleet has total deadweight of over 12.7 million tonnes, including vessels owned through joint ventures. More than 80 vessels are of ice class for Arctic waters.