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Yamal LNG Project Chooses Sovkomflot Carriers

One of Sovkomflot's ships sitting in dock.

The Yamal LNG project in Russia's Arctic has chosen Russian Sovkomflot, Japan's Mitsui OSK and Canada's Teekay LNG to build gas carriers worth $5 billion, Vedomosti reported on Wednesday.

Vedomosti, citing a source close to Yamal LNG shareholders, said that the companies would build 16 LNG carriers and ship the supercooled gas.

A spokesman for Russia's Novatek, which holds 60 percent in the $27 billion project, declined to comment. France's Total and Chinese company CNPC have 20 percent each.

The project is slated to start producing gas in 2016 with a view to supplying 16.5 million tonnes of the tanker-shipped fuel in 2018.

Novatek plans to ship its gas to Asia mostly via the Northern Sea Route as it brings estimated transportation costs down by two-thirds compared to the route via Europe.

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