Dynagas has fixed nine of its VLGCs on “long-term” timecharters to transport LNG from the Yamal LNG Project, located on the Yamal Peninsula in north-east Russia.
In early August, Dynagas purchased newbuilding contracts for five 172,000-cbm ARC7 LNG carriers from Sovcomflot.
The vessels, which together have an estimated contract value of around $1.5bn, are currently under construction at Daewoo Shipbuilding & Marine Engineering (DSME) in South Korea, and will serve the Yamal project under “long-term” timecharters of unspecified length.
The newbuidings will be capable of breaking 2.1-metre-thick ice while going forwards and in reverse, and are scheduled for delivery in 2017.
Four of Dynagas’ existing ARC4 LNG carriers will each be placed on 15-year timecharters to carry Yamal LNG cargoes committed to Asian buyers from 2019 onwards.
The Yamal LNG project consists of three LNG trains with a total capacity of approximately 16.5m tpa of LNG. The project is a joint venture between Novatek (which has 60% ownership), Total (20%) and China National Oil & Gas Exploration and Development Corporation (CNODC) (20%).
A joint venture (JV) between Teekay LNG and China LNG Shipping is building six new 172,000-cbm ARC7 LNG carriers to serve the Yamal LNG project, and another JV between Mitsui OSK Lines (MOL) and China Shipping Development is building three.
The newbuilding orders were placed in July 2014 and are scheduled for delivery between 2017 and 2019.
“The award of five long-term contracts for the Arc7 LNG carriers and award of four long-term contracts for our existing Arc4 LNG carriers is a testament to our long-term commitment and our manager’s operational excellence and expertise in operating high-specification ice-class LNG carriers,” commented George Procopiou, founder and chairman of Dynagas Holding.
Dynagas Holding represents the world’s largest fleet of ice-classed LNG carriers. It is the sponsor company of NYSE-listed Dynagas LNG Partners LP, in which it holds a 44% stake and is general partner.