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Future of Russian LNG Carriers for Arctic LNG 2 Uncertain: Platts

LNG

The LNG shipping market is divided over the fate of six Arc7 LNG carriers currently under construction in South Korea and originally meant for the Arctic LNG 2 project, Platts said.

  • Due to sanctions on the project and against Sovcomflot, they are open to new buyers.
  • However, the sanction regime makes investing in equipment designed to service Russian LNG less attractive.
  • "Arc7 vessels are very specialized and hence a pricy carrier," a shipbroker told Platts. "It is not feasible and efficient to use it as a conventional carrier, so there are not many solutions."
  • Some sources thought that they may be used instead as conventional carriers: using them as floating storage would be impractical.
  • Others expect them to be gradually reintegrated into the global fleet as emissions regulations force out older vessels.
  • Another source also foresees an eventual return to Russian LNG in the long-term, given demand from China and India.

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