Sovcomflot, partners secure loan for Tangguh LNG vessels

Russian shipping firm Sovcomflot announced Wednesday that it and partners Nippon Yusen Kabushiki Kaisha (NYK), and PT. Samudera Shipping Services had concluded a limited recourse loan facility agreement of USD400 million with a banking syndicate comprising of Societe Generale, Sumitomo Mitsui Banking Corporation (SMBC), DnB NOR Bank, and ANZ Investment Bank.

The loan facility is being utilized to finance the construction two 145,700 cbm membrane type LNG carriers contracted at Daewoo Shipbuilding and Engineering Co. Ltd., South Korea. The vessels have been committed for long term time-charter for 16 and 20 years to the BP-led Tangguh Project for the transportation of LNG from Eastern Indonesia to the Asian and American Pacific.

Tangguh will commence shipping of LNG late 2008.

The vessel is capable of carrying about 87.5m cbm tons of natural gas which is sufficient enough for house heating in a town with population of around 500 thousand people.

Russian shipowner?s participation in the transportation of LNG from Indonesia was a result of winning the international tender announced by project operator in 2005, by Sovcomflot and its partners.(denny)