SCF Group Secures Funds for New Arctic LNG Tanker
PAO Sovcomflot (SCF Group) and VTB Bank have signed a $260 million 13-year loan agreement, providing financing of construction of an Arctic liquefied natural gas (LNG) tanker for the Yamal LNG project.
The agreement was signed on June 17, 2016 by Sergey Frank, President and CEO of PAO Sovcomflot, and Andrey Kostin, President and Chairman of the Management Board of VTB Bank, as part of the 20th International Economic Forum in Saint Petersburg.
The new tanker, due for delivery in the first quarter of 2017, will be able to carry up to 172,600 cubic meters of LNG and has an Arc7 enhanced ice class, enabling independent navigation in ice fields of up to 2.1 meters thick. The vessel will have a 45 MW propulsion system, which is comparable to that of the nuclear ice breakers.
“We are completing the construction of an innovative vessel, which has no analogs in the world to date, and we have concluded a unique transaction to finance this project,” said Sovcomflot’s CEO Sergey Frank. “This is one of the first such agreements ever signed in Russia, to finance a vessel construction, which is traditionally a very capital-intensive and long-term investment project. I am confident that the solid performance delivered by our company will enable it to continue to be a reliable and attractive partner for Russian banks.”
Andrei Kostin, President and Chairman of VTB Bank Management Board, said, “VTB Bank always takes part in innovative and high-tech projects with great interest. The loan to Sovcomflot, Russia’s largest shipping company, will be used to build a unique new ice-resistant LNG tanker for the Russian Arctic. I’m confident it will help Russia further develop this harsh territory.”
