Sovcomflot Wins VEB Funds for LNG-Fueled MR Tankers

Maritime Activity Reports, Inc.

June 10, 2019

The agreements were signed by Nikolay Kolesnikov, Executive Vice President and CFO of Sovcomflot (right), and Artem Dovlatov, CEO of VEB-Leasing (left). Photo: PAO Sovcomflot (SCF Group)

The agreements were signed by Nikolay Kolesnikov, Executive Vice President and CFO of Sovcomflot (right), and Artem Dovlatov, CEO of VEB-Leasing (left). Photo: PAO Sovcomflot (SCF Group)

Sovcomflot, a Russian maritime shipping company specializing in petroleum and LNG shipping,  and VEB.RF Group announced the signing of agreements whereby VEB Leasing will finance the construction of three new LNG-fuelled MR tankers.

Sovcomflot initially placed the order for these three tankers with the Zvezda Shipyard (Primorsky region) on 28 December 2018. The delivery of the vessels is scheduled for 2022-2023.

Each tanker will have a deadweight of 51,000 tonnes, and they are intended to transport petroleum products and gas condensate, operating under 20-year time charter agreements with Novatek.

The vessels will have an Ice Class 1B classification, enabling them to provide safe and reliable year-round transportation for hydrocarbons in challenging ice conditions, in particular within the Baltic Sea.

The vessels' technical specifications have been designed to meet international regulations on emissions, which come into effect in 2020. In comparison with conventional bunkers, the use of LNG fuel can significantly reduce the amount of vessel emissions, for example: sulphur oxides (SOx) reduced by 100%; nitrogen oxides (NOx) reduced by 76%; carbon dioxide (CO2) reduced by 27%; low-dispersed particles eliminated completely.

Sergey Frank, President and CEO of Sovcomflot, said: "Sovcomflot is one of the world leaders in the implementation of "green" technologies in the transportation of energy by sea. The company already successfully operates six new-generation Aframax tankers, which are powered by LNG fuel. Five more LNG-powered vessels have been ordered by Sovcomflot from the Zvezda shipyard and will be built over the next few years. We welcome the plans of Russian shipbuilders to create modern large-tonnage LNG-fuelled vessels which, of course, represent the future of world shipping."

"We are pleased that our history of positive cooperation with VEB.RF Group has been further developed with this project. VEB Leasing previously participated in financing the construction of a number of Sovcomflot’s leading vessels in Russia, such as the Arctic shuttle tankers of the Mikhail Ulyanov series, as well as new-generation Aframax tankers being built at Zvezda,” commented Sergey Frank.

"Shipbuilding is one of the largest engineering industries, with a significant scientific and technical component.  Support for this industry is one of the priorities of VEB Leasing and VEB.RF, to assist the industrial development of Russia," said Artem Dovlatov, CEO of VEB-Leasing.

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