South shipbuilder that is korean Heavy Industries recently completed the delivery of a new Aframax shuttle tanker to Russia’s state-run shipping company Sovcomflot. Analysts had raised concerns in recent weeks about the shipyard and the shipbuilding that is korean’s experience of Russia additionally the potential dilemmas after the enacting of the financial and banking sanctions after the invasion of Ukraine.
Samsung is believed to have the publicity that is largest to Russia. The shipbuilder has a brief history that is long of both with Sovcomflot and a partnership with all the Zvezda shipbuilding complex. In 2018, Samsung reported it could form a venture that is joint the Russian shipbuilder to advance the growth of tankers.
Earlier in March, Korean media reported that Samsung was delaying the delivery of two shuttle tankers ordered in 2019 while closely developments that are following Russia. With the sanctions targeting the banking that is russian, there have been concerns regarding the way the shipyard would be covered the vessels. In announcing the delivery of the first of this two tankers completed on March 30, Samsung said that the payment ended up being made following the regards to the contract without providing details which are further. Distribution associated with shuttle that is second is pending with the yard only stating that they likely to complete the distribution briefly.
“Russia-linked requests are heavily concentrated on liquefied gas that is natural from Korean yards, with Samsung Heavy Industries the most exposed,” Adam Kent, managing director at Maritime Strategies International told BusinessKorea. While explaining that Russia only makes up two-and-a-half percent of the global orderbook, Kent estimated that Samsung holds orders respected at more or less $5 billion tied to the shipping company that is russian. The orders which can be total by the South Korean yards tied to the Russian companies are respected at more than $8 billion, including LNG carriers and equipment.
Later in 2021, Sovcomflot expanded the South Korean shipbuilders to its relationship. In October they announced a order that is brand new Samsung Heavy Industries and Japan’s NYK valued at over $800 million for four 174,000-cbm LNG carriers that would be chartered to Novatek petrol & Power Asia. The shipyard additionally gave Sovcomflot an alternative for two gas that is additional.
Sovcomflot working with Japan’s Mitsui OSK Lines additionally placed an order in September 2021 for four fuel that is LNG. The four similarly sized vessels are to be built by Daewoo Shipbuilding & aquatic Engineering for delivery in 2024.