Russia plans to order 13 LNG carriers

2013-11-16 09:00

Russia plans to order from a South Korean shipyard 13 ships, or even more LNG transport vessels. The former is one of the world's largest LNG producers, while the latter is the LNG second largest buyer.

The South Korean presidential office released this news on Wednesday during Russian President Putin's visit to Seoul and summit meeting with South Korean President Park Geun-hye.

As part of the agreement between the two countries, Russian energy giant Rosneft shipping company SovComFlot and Gazprombank have reached an agreement with the South Korean shipyard Daewoo Shipbuilding & Marine Engineering to build a shipyard in Russia.

The two countries also reached a consensus on the future transportation of natural gas to South Korea via pipeline, but did not disclose further details. Discussions on pipeline gas transmission have been slow due to the pipeline passing through North Korea.

In a joint statement, the two sides stated: "The decision on the long-term supply of pipeline gas from Russia to South Korea will consider resource availability, economic stability, and other prerequisites necessary for this project."

One of the world's largest LNG buyers, the South Korean state-owned enterprise Korea Gas Corp currently imports from Sakhalin Island 150 metric tons LNG annually, with an agreement until 2028 year. Last year, South Korea imported a total of over 3600 metric tons LNG Russia accounted for 6%。

To strengthen bilateral business relations, the two countries also agreed to grant each other 60 visa-free days.

It is understood that Russia's Yamal LNG project was 7 month 4 day announced the completion of the ice-class LNG ship bidding process, with Daewoo Shipbuilding & Marine Engineering winning the bid. According to the agreement, the selected shipyard will build, launch, equip, complete, and deliver a total of 16 vessels LNG while also initially determining the ship price, launch, and delivery time.

Subsequently, Daewoo Shipbuilding & Marine Engineering publicly stated on 7 month 8 day regarding the Yamal project that it had signed a LNG ship construction schedule contract, and stated that the order size totaled 16 vessels. The company stated that it would make further announcements after the formal contract signing. At the time, some experts pointed out that it was not yet certain that Daewoo Shipbuilding & Marine Engineering would receive all 16 vessels LNG ship orders.

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