LNG

Seatrium of Singapore, a leading global company in repairing, upgrading or refitting LNG carriers, has signed another favoured customer contract - this time with Teekay Shipping in Australia.

Seatrium said that this latest Teekay agreement was its first with a leading ship management company for the repairs and upgrades of a fleet of vessels under its Australia Defence Maritime Support Services Program (DMSSP).

The contract, which includes the refit of a series of vessels over the next two years, will see Seatrium collaborating closely with Teekay in joint planning, information sharing, and leveraging mutual experience to facilitate the successful execution of these projects.

The Singaporean company earlier in July 2024 signed an FCC with the Angelicoussis Group, the largest shipping line in Greece and one of the world’s largest privately-owned fleets with 141 ships operating under Maran Gas, Maran Tankers and Maran Dry.

Seatrium said that two-year contract with a one-year renewal option included the refit of 10 to 15 vessels per year comprising LNG carriers, tankers and bulk carriers.

Korean accord

This followed a previous FCC in May 2024 with a South Korean shipping company, Hyundai LNG Shipping, marking the first long-term strategic partnership agreement with a Korean LNG transporter for the repairs and upgrades of its LNG carriers.

That contract included the refit of a series of LNG carriers over the next two years.

The Teekay Australia accord was signed between Tony Armstrong, Managing Director of Teekay Australia, and Alvin Gan, Executive Vice President, Repairs and Upgrades at Seatrium.

Seatrium is attracting global shipping and energy companies because of its offering of one-stop repair and upgrade solutions for all types of vessels and offshore structures.

We develop strong relationships with our clientele to offer vessel owners highly customised and proactive solutions for all vessel repairs and upgrades, including energy efficiency.

Strategic partnership

Peter Iuliano, Head of Operations of Teekay Shipping Australia, said this strategic partnership marked a significant move for the company.

“By collaborating with Seatrium, we aim to enhance our operational efficiency and instil the highest standards of quality, safety, and environmental sustainability in the maintenance of our specialised vessels,” explained Iuliano

“Our first vessel under the Favoured Customer Contract agreement scheduled for repairs in Seatrium’s Admiralty Yard in Singapore is in July 2024, with six more dockings planned. We look forward to a fruitful and successful partnership with Seatrium,” he declared.

Seatrium executive Gan said that his company was delighted to be chosen as the strategic partner for Teekay’s Australian operations.

“This agreement not only highlights our expertise in specialised repairs for naval and maritime security related projects, but also demonstrates our dedication to delivering excellence and customised solutions to our partners,” Gan stated.

Seatrium of Singapore, a leading global company in repairing, upgrading or refitting LNG carriers, has signed a favoured customer contract with a South Korean shipping company.

Sembcorp Marine of Singapore, ranked among the leading facilities in the world for LNG vessel repairs and upgrades, is the subject of a rights issue of S$2.1 billion ($1.5Bln) to recapitalise the shipyard group.

Sembcorp Marine shipyards in the Asian city state have built a reputation for LNG-powered vessels, bunkering ships and floating LNG storage.

The boards and management teams of Sembcorp Marine and its parent company, Sembcorp Industries, believe that the proposed rights issue and demerger will strengthen the financial positions of both and unlock shareholder value.

“With greater flexibility following the demerger, both companies can pursue their own sustainable growth paths on the back of changes to their industries in recent years,” it added.

Sembcorp Marine proposes to build on its core engineering solutions for the offshore, marine and energy industries.

One of its projects is the 12,000 cubic metres capacity LNG bunkering vessel ordered from Sembcorp’s Tuas Boulevard Yard.

On completion, currently scheduled for early 2021, the dual-fuel bunkering vessel will be chartered to Singapore’s Pavilion Gas for deployment for fueling ships with LNG in the Port of Singapore.

The vessel is the largest of its kind being built locally, in terms of size and LNG tank capacity and is Sembcorp’s first LNG bunker vessel construction project.

Other ongoing upgrades and conversion projects in LNG at Sembcorp’s Admiralty yard include the floating storage and regasification unit (FSRU) “Karmol LNGT Powership Africa” destined for Mozambique and other work.

Parent company Sembcorp Industries will continue to be focused on its core areas of energy and urban development and be poised to capture opportunities in the sustainable energy transition.

“Sembcorp Marine, which has been doubly hit by the Covid-19 pandemic and recent collapse in oil prices, will also be able to better address its urgent need to recapitalise, meet liquidity requirements, and strengthen its balance sheet to ride through the prolonged downturn in the offshore and marine industry,” said the statement.

Both Sembcorp companies will be seeking their respective approval of their shareholders at extraordinary general meetings (EGMs), which are expected to be convened around the of August or early September 2020.

The rights issue is also conditional on Sembcorp Marine shareholders passing a resolution to waive their rights to receive a general offer from Singapore wealth fund Temasek and in connection with the proposed distribution.

Sembcorp Industries has given an undertaking to vote in favour of the rights issue resolution at Sembcorp Marine’s EGM.

The current Sembcorp Marine order book comprises a fairly broad spectrum of product types, including several new-build floating production, storage and offloading vessels, offshore production platforms, as well as battery-operated roll-on, roll-off passenger vessels and LNG bunkering and conversions work.

The Sembcorp construction and conversion work for LNG mainly affects projects involving joint ventures of Japanese shipping company, Mitsui OSK Lines (MOL).

Sembcorp noted in its most recent earnings the Ministry of Manpower in the city state announced movement restriction measures that prevented migrant workers from leaving their dormitories for work.

The workforce of the shipyards normally amounts to 20,000 persons but was substantially reduced to 850 person.

The reduced workforce was deployed to manage critical works and support yard essential services such as emergency response teams, facilities and utilities management and yard security.

Karmol “LNGT Powership Africa” is part of a joint venture involving MOL and the Turkish floating power plant company Karpower International and the vessel is destined for Mozambique.