LNG Carriers for Arctic Projects At Risk, Troublesome Russian Invasion

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  • French LNG containment specialist GTT said the execution of certain contracts is at risk, mainly LNG carriers for Arctic projects, due to Russia’s invasion of Ukraine.
  • GTT says it is closely monitoring the evolution of the situation in Ukraine and Russia.
  • The group expresses its solidarity with the victims of the current conflict.

A recent news article published in the Riviera states that Ukraine-Russian situation could affect LNG tank orders.

Design of cryogenic tanks for LNG carriers

There is a potential risk for the continuation and proper execution of certain contracts.

GTT oversees the design of cryogenic tanks for LNG carriers and GBS for Arctic gas liquefaction projects in northern Russia. As of 31 December 2021, approximately 12 per cent of the order book correspond to units under construction in Russia. This amounts to $110.5 million (€100 m).

The realisation of this order book is to take place over a period of five years between 2022 and 2026.

Other orders in progress in Asian shipyards also concern LNG carriers and FSUs, intended specifically for Arctic projects. These represent a total of an additional $63 million (€57m) for GTT, spread over the 2022-2024 period.

LNG carriers for Arctic projects

Finally, other orders concern LNG carriers for Arctic projects. However, these units are able to operate in all types of conditions.

Beyond those events, GTT says this crisis highlights the importance of gas demand worldwide and more specifically the strategic importance of maritime transport of LNG.

The company informs it is continuously assessing the consequences of the situation for its teams and activities in order to take the appropriate measures.

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Source: Offshore Energy

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