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DSME cancels last of three Sovcomflot LNG carriers

South Korea’s Daewoo Shipbuilding & Marine Engineering (DSME) has cancelled a third and final order for a specialised icebreaking LNG carrier newbuild that was originally contracted by Russian shipowner Sovcomflot.

The shipbuilder, which did not name the owner involved, said in a stock exchange filing that due to export controls on Russia, the supply of major equipment and materials has been delayed or suspended, making it impossible to build the ship.

The canceled order, worth 337.9bn won, or around $253m at today’s exchange rate, is part of a 1.1trn won three-vessel package Sovcomflot booked in October 2020 for Novatek’s Arctic LNG 2 project in Russia.

The first contract was terminated in May and the second in June after the owner failed to make interim payments on the vessels by the scheduled date. DSME was slated to deliver the units by the end of 2023.

Japanese shipping major Mitsui OSK Lines (MOL) also has three icebreaking LNG ships on order at DSME for Novatek charter to serve the Arctic LNG 2 project upon delivery in 2023.

Adis Ajdin

Adis is an experienced news reporter with a background in finance, media and education. He has written across the spectrum of offshore energy and ocean industries for many years and is a member of International Federation of Journalists. Previously he had written for Navingo media group titles including Offshore Energy, Subsea World News and Marine Energy.
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