DSME cancels second LNG carrier order by Sovcomflot

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Ships are under construction at the Daewoo Shipbuilding & Marine Engineering Co. (DSME) shipyard in Geoje, South Korea, on Wednesday, April 22, 2009. Daewoo Shipbuilding & Marine Engineering Co. is the world's third-largest shipyard. Photographer: Seokyong Lee/Bloomberg News

Daewoo Shipbuilding & Marine Engineering (DSME) has cancelled the second of three ordered liquefied natural gas carriers ordered by Russia’s Sovcomflot, after the client failed to make an interim payment.

“As the shipowner did not pay the shipbuilding price for one LNG carrier within the due date, the company notified the contract termination. The contract has conditions that the shipowner must fulfill and, if the conditions are not met, the contract may be cancelled,” said DSME.

Sovcomflot in October 2020 ordered three Arc7 LNG carriers, which were destined to serve the Arctic LNG 2 project from DSME.