Korean Daewoo has terminated a major contract to build tankers for Russia

Daewoo Shipbuilding Marine Engineering

South Korean shipyard Daewoo Shipbuilding & Marine Engineering (DSME) has terminated the contract for the construction of three LNG tankers commissioned by Sovcomflot for the Arctic LNG-2 project of the Russian private company Novatek.

Transmitted  by the National Industrial Portal  with reference to  Economic Truth .

The reason was the delay in payment under the contract by the shipping company.

According to TradeWinds, these are tankers for the Arctic LNG-2 project.

The media remind that DSME has built the entire fleet for Novatek for the Yamal LNG project – 15 Arc7 tankers.

“Due to the fact that the shipowner’s payment for the construction of one LNG tanker (liquefied natural gas – ed.) Was not made in a timely manner, we notified the company of the termination of the contract to protect our rights,” – said in a statement DSME.

Despite the fact that the payment was broken only for one of the three gas tankers ordered by Sovcomflot, the contract is planned to be terminated completely.

The Daewoo shipyard was expected to deliver the tankers in February, April and July 2023. The contract for their construction was signed in October 2020, the total cost of which was $ 872 million for three vessels.

At the same time, Sovcomflot was unable to pay for the order, probably due to payment problems that arose after the company came under US, EU and British sanctions due to the war in Ukraine.

Sovcomflot said it did not comment on commercial contracts, and NOVATEK did not respond to a request.

Interlocutors of the newspaper say that the Russian shipyard “Zirka” may not place an order on time, given that LNG tankers have never been built in Russia.

Zirka was going to build tankers in cooperation with the South Korean shipyard Samsung Heavy Industries (SHI), which could affect the prospects of the project. In March, the EU imposed technological sanctions on Russian shipbuilding, banning the supply of virtually the entire range of equipment.

(C)NATIONAL INDUSTRIAL PORTAL 2022

2 comments

  1. Hahahaha…
    Moskali are going broke and all their high tech projects are getting ruined. No more space travel, no more modern military, no more international flights, no more cell phones…right back to 1984 which is what Vladolf wanted. Aside from Ukrainians, the Russian people are hurt most

    Liked by 4 people

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