Clifford Chance

Clifford Chance advises MOL and China Shipping on contracts to build three ice class LNG carriers for Yamal LNG project

Leading international law firm Clifford Chance has advised Mitsui O.S.K. Lines Ltd (MOL) and China Shipping (Group) Company on their successful tender to build three ice class LNG carriers at Daewoo Shipbuilding & Marine Engineering Co., Ltd. at an approximate cost of US$300 million each for long term charter to the Yamal LNG project, located on the Yamal Peninsula in Northern Russia.

The LNG project on Russia's Yamal peninsula is set to comprise three LNG trains, with a total production capacity of 16.5 million mt/year, and will target export markets specifically in the growing Asia Pacific region. Russia's Novatek holds 60% in the project, while France's Total and China's CNPC own 20% each.

Maritime and Offshore partner Alastair MacAulay who led on this transaction said, "This was a challenging deal for everyone, but it was a privilege to work with MOL and China Shipping whose professionalism and cooperation enabled them to successfully close another deal together."

MOL and China Shipping LNG Investment Co. Limited have other joint ventures to build and operate ships to transport LNG from Australia and Papua New Guinea.

Alastair was supported by counsel Yusuke Abe in Tokyo, senior associate Cho Bong Sang in Seoul, associates Vanessa Wu and Jessie Chen in Beijing, and senior associate James Bradley in Hong Kong.