Korean Daewoo Cancelled the Contract for Construction of LNG Carriers for Russia

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

The reason was the late payment under the contract by the shipping company. Sovcomflot was unable to pay for the order, probably due to problems with payments that arose after the company became sanctioned by the US, the EU and the UK over the war in Ukraine.

The shipyard was supposed to deliver the tankers in February, April and July 2023. The contract for their construction was signed in October 2020, its total value was $ 872 million.