The two companies further their relationship with a charter that will run for up to seven years and promises lower emissions
The French energy major will take in a newbuilding 174,000 cu m liquefied natural gas carrier from Sovcomflot in 2021 and have options to take in two more vessels
TOTAL, the French energy major, has entered a deal to charter in up to three new liquefied natural gas carriers from Sovcomflot.
Total will take in a 174,000 cu m LNG carrier, owned by the Russian shipping company and under construction at Hyundai Heavy Industries, in the third quarter of 2023 for up to seven years. It has the option to charter in two more carriers.
Sovcomflot did not disclose how much revenue it expects the charter to generate.
“We are grateful to our valued partners at Total for the opportunity to participate in this interesting project which extends further our co-operation in LNG transportation with one of the world’s leading international energy companies,” Sovcomflot chief executive Igor Tonkovidov said in a statement.
The LNG newbuilding will need to consume less fuel than previous LNG carriers, according to Sovcomflot, as it will have an X-DF propulsion system with a slow-speed diesel engine “with a direct drive to the propellers”.
It will also have a partial reliquefaction system that will allow cargo boil-off gas to be returned to the tank.
“The new carrier will also be fitted with a hull air lubrication system which, combined with two-shaft power generators with frequency-to-current converters, is expected to deliver a further significant decrease in fuel consumption and greenhouse gas emissions,” it said.
Last week, Sovcomflot’s newbuilding 174,000 cu m SCF Timmerman (IMO: 9870525) began a long-time charter with Shell.
The charter is expected to generate the Russian company $165m in contract backlog.