Teekay JV finalizes shipbuilding contracts for Yamal LNG project

Teekay LNG Partners LP, Hamilton, Bermuda, through a 50-50 joint venture with China LNG Shipping (Holdings) Ltd., has finalized shipbuilding contracts for six internationally flagged icebreaker LNG carriers for the Yamal LNG project, which lies on Northern Russia’s Yamal Peninsula (OGJ Online, May 15, 2014).

Under the agreements, the JV will build six 172,000-cu m ARC7 LNG carrier newbuilds to be constructed by Daewoo Shipbuilding & Marine Engineering Co. Ltd., South Korea, for a total fully built-up cost of $2.1 billion.

The vessels will be constructed with maximum 2.1-m icebreaking capabilities in both the forward and reverse direction.

Yamal LNG—a joint venture of Novatek (60%), Total SA (20%), and China National Petroleum Corp. (20%)—will consist of three LNG trains with a total expected capacity of 16.5 million tonnes/year of LNG and is currently slated to start-up in early-2018.