Arc7 LNG carrier order cancelled

Market: Natural gas
18/05/22

An order for an Arc7 ice-class LNG carrier has been cancelled after the shipowner that placed the order — understood to be Russia's Sovcomflot — missed a payment deadline.

The cancelled newbuild vessel is one of three LNG carriers ordered at South Korean shipbuilder Daewoo Shipbuilding and Marine Engineering (DSME) in October 2020, the shipbuilder said today. The orders for the other two carriers remain in place.

The order had subsequently been tied to Sovcomflot by Russian developer Novatek, which planned to use the three vessels to load LNG at its planned 19.8mn t/yr Arctic LNG 2 liquefaction project. Japanese shipowner Mitsui OSK Lines also ordered three Arc7 carriers for use with the planned Russian liquefaction facility.

Sovcomflot's three Arc7 carriers ordered at DSME were scheduled for delivery in February, April and July 2023.

The shipowner's LNG carrier orderbook is made up mainly of Arc7 vessels ordered at the Rosneft-led Zvezda shipyard in Russia's far east. But Sovcomflot has also ordered three LNG carriers with South Korean shipbuilder Hyundai Samho Heavy Industries. The three carriers — named after French writers Jules Verne, Alexandre Dumas and Victor Hugo — are scheduled for delivery in April 2023, February 2024 and August 2024, respectively.

Sovcomflot has faced several financial and operational issues in recent months, stemming from sanctions placed on the firm earlier this year, with half of its 12-strong LNG fleet still idle as of late April. Four LNG carriers, all sailing under term charters with Shell, have reportedly been sold to another shipowner, although this could not be confirmed. That said, all four have since changed their names.

By Samuel Good

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Cop: EU, four countries commit to 1.5°C climate plans

Baku, 21 November (Argus) — The EU, Canada, Mexico, Norway and Switzerland have committed to submit new national climate plans setting out "steep emission cuts", that are consistent with the global 1.5°C temperature increase limit sought by the Paris Agreement. The EU and four countries made the pledge at the UN Cop 29 climate summit in Baku, Azerbaijan today, and called on other nations to follow suit — particularly major economies. Countries are due to submit new climate plans — known as nationally determined contributions (NDCs) — covering 2035 goals to the UN climate body the UNFCCC by early next year. The EU, Canada, Mexico, Norway and Switzerland have not yet submitted their plans, but they will be aligned with a 1.5°C pathway, EU climate commissioner Wopke Hoekstra said today. The Paris climate agreement seeks to limit the global rise in temperature to "well below" 2°C and preferably to 1.5°C. Canada's NDC is being considered by the country's cabinet and will be submitted by the 10 February deadline, Canadian ambassador for climate change Catherine Stewart said today. Switzerland's new NDC will also be submitted by the deadline, the country's representative confirmed. Pamana's special representative for climate change Juan Carlos Monterrey Gomez also joined the press conference today. Panama, which is designated as carbon negative, submitted an updated NDC in June. It is planning to submit a nature pledge, Monterrey Gomez said. "It is time to streamline processes to get to real action", he added. The UK also backed the pledge. The UK announced an ambitious emissions reduction target last week. The UAE — which hosted Cop 28 last year — released a new NDC just ahead of Cop 29, while Brazil, host of next year's Cop 30, released its new NDC on 13 November during the summit. Thailand yesterday at Cop 29 communicated a new emissions reduction target . Indonesia last week said that it intends to submit its updated NDC ahead of the February deadline, with a plan placing a ceiling on emissions and covering all greenhouse gases as well as including the oil and gas sector. Colombia also indicated that its new climate plan will seek to address fossil fuels, but it will submit its NDC by June next year . By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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LNG diversions to Europe reach double digits

19/11/24

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19/11/24

LNG diversions to Europe reach double digits

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G20 mayors call for $800bn/yr to address climate change

19/11/24

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19/11/24

G20 mayors call for $800bn/yr to address climate change

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