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Sovcomflot signs deal to develop shiprepair cluster in Russia's far east

TradeWinds

Shipowner teaming up with Novatek and FESRC to boost yard capacity following foundation of Zvezda complex

Russian shipowner Sovcomflot (SCF Group) has joined forces with two more domestic companies to expand shiprepair capacity in the far east of the country.

A cooperation deal has been signed with Sovcomflot's own shipping joint venture with energy giant Novatek, Smart LNG, and Rosneft subsidiary Far Eastern Shipbuilding and Ship Repair Center (FESRC).

The agreement was inked by Sovcomflot chief executive Igor Tonkovidov, Andrey Shishkin, CEO of FESRC, and Sergey Frank, chairman of both Sovcomflot and Smart LNG, at Zvezda Shipbuilding Complex in Bolshoy Kamen.

Zvezda has 30 tankers and LNG carriers on order for Sovcomflot, Smart Shipping, Rosneft and the Russian government.

Further development

Cooperation between Sovcomflot, Russian energy companies and financial institutions made it possible to create Zvezda, the country's first serial producer of large, modern cargo vessels.

This model will serve as the foundation for the further development of a shipbuilding and ship repair cluster in the region, the companies said.

No time frame has been revealed for the work.

The Russian executives were at Zvezda for a keel-laying ceremony for a new 51,000-dwt MR product carrier ordered by Sovcomflot to transport gas condensate in the Baltic under a 20-year time charter to Novatek.

The ship is designed to use LNG as its primary fuel.

Four such vessels are on order for the Russian owner, for delivery in 2022 and 2023.

Sovcomflot – Russia’s main LNG shipowner – has also been working closely with Novatek on all of its Arctic LNG business.

Smart LNG has booked 14 Arc7 LNG carrier newbuildings at Zvezda.