Sovcomflot participates in Gaidar Forum

On 15 January 2019 Sergey Frank, President and CEO of Sovcomflot, participated in a panel discussion of experts on the topic of "Gas engine fuel: Russia's present and future", at the Gaidar Forum in the Russian Academy of National Economy and Public Administration, under auspices of the President of the Russian Federation. The event was attended by Viktor Zubkov, Chairman of the Board of Directors of PAO Gazprom, Alexander Novak, Energy Minister of the Russian Federation, and other industry experts. 

In his report, Sergey Frank shared his experience in the development and implementation of technology for using LNG gas engine fuel for ships accumulated by Sovcomflot Group since 2015. 

Sergey Frank noted that the experience of SCF's large-capacity tankers, of the so-called ‘Green Funnel’ series, is relevant not only in the Baltic and North Seas where the strictest restrictions on atmospheric emissions apply, but also in the Arctic with its fragile ecosystem. The use of LNG as a primary fuel has good potential in light of the decision of the country's leadership to increase traffic along the Northern Sea Route (NSR) to 80 million tonnes per annum. 

Sergey Frank stressed that the construction of ‘Green’ tankers was already being localised in Russia. In September 2018 Sovcomflot signed a package of agreements with Rosneft, the Zvezda Shipbuilding Complex and VEB Group for the construction of a series of new-generation large-capacity Aframax oil tankers. At the end of December, Sovcomflot placed an order with the Zvezda Shipbuilding Complex for the construction of three new-generation MR tankers that will use LNG as their primary fuel. The efficiency of the fleet's transition to gas engine fuel in the Russian Federation, however, depends upon the support of regulators, the development of an LNG bunkering infrastructure, and the interaction between the banking sector, shipbuilding industry and shipping companies.  

SCF Press Service 

Sovcomflot (SCF Group) is one of the world's leading energy shipping companies, specialising in the transportation of crude oil, petroleum products, and liquefied gas, as well as the servicing of offshore oil and gas exploration and production. The company’s fleet includes 144 vessels with a total deadweight of 12.5 million tonnes. 80 vessels have an ice class. 

Sovcomflot is involved in servicing large oil and gas projects in Russia and around the world: Sakhalin-1; Sakhalin-2; Varandey; Prirazlomnoye; Novy Port; Yamal LNG, and Tangguh (Indonesia). The company is headquartered in Saint Petersburg, with offices in Moscow, Novorossiysk, Murmansk, Vladivostok, Yuzhno-Sakhalinsk, London, Limassol, and Dubai.

The first Green Funnel Aframax tanker, Gagarin Prospect, was added to the SCF fleet in July 2018. The second tanker in this series, Lomonosov Prospect, was accepted into service in October 2018, and the third one, Mendeleev Prospect, in November. It is expected that by the second quarter of 2019 Sovcomflot will have six such vessels in operation under its management. LNG-fuelled tankers emit 100% less sulphur oxides (SOx) and particulates, 76% less nitrogen oxides (NOx) and 27% less carbon dioxide (CO2) compared to vessels using conventional heavy fuel. The Green Funnel tankers have a deadweight of 113,000 tonnes, whilst their 1A ice classification allows them to operate safely in seas with difficult ice conditions.