LNG

Gaztransport and Technigaz (GTT), the French LNG storage technology company, has received an order from a Chinese shipyard to design the cryogenic fuel tanks of 10 ultra-large containerships to be powered by LNG as part of the move to cleaner maritime fuel.

Gaztransport and Technigaz (GTT), the French designer of LNG storage tanks for ships and for onshore including record licensing orders for LNG carrier membrane tanks, has decided on a full withdrawal from contracts for Russian ships and projects.

GTT has been involved in tank design for 15 ice-breaker LNG carriers currently being built at the Zvezda Shipbuilding Complex (Zvezda) in the Russian Far East and for the design of three gravity-based storage tanks for other projects.

The Paris-based company said that as of October 1, 2022, revenues of €74 million ($80M) remained to be recognised for the ice-breaking LNG carriers by 2025 and €12M for the GBSs by 2027, which was a total exposure representing less than 6 percent of the order book.

“Following an in-depth analysis of European sanction packages No. 8 and No. 9 notably prohibiting engineering services with Russian companies, the group announces that it is ceasing its activities in Russia,” stated GTT.

The company explained that as of January 8, 2023, the contract with Russia’s Zvezda would be suspended and GTT's interventions would be limited, on the two most advanced LNG carriers, to ensuring the “safety of the projects” and the “integrity of the technology” in compliance with the international sanctions in force.

GBS projects

With regards to the GBS projects, the terms of GTT's departure are currently being finalised.

GTT added that these elements would have a financial impact mainly from 2023.

“GTT's order book will no longer include projects in Russia in the future. In addition, from 2023 onwards, the group's annual targets will exclude the revenues and EBITDA that would be generated by the last services in progress in Russia,” it added.

The company added that other shipping orders under construction in Asian shipyards, relating to six ice-breaking LNG carriers and two Floating storage units (FSUs), are intended specifically for Russian Arctic LNG projects.

“To date, these projects are proceeding normally. As of October 1, 2022, these orders represented a total revenue of €31M for GTT, to be recognised by 2024,” it said.

“Finally, eight conventional LNG carriers ordered by international shipowners, under construction in Asian shipyards, are also intended for Russian Arctic projects, but can operate in all types of conditions,” explained GTT.

“The group remains sensitive to the evolution of the situation and is taking all necessary measures to protect its employees and stakeholders, in compliance with international sanctions,” it concluded.

Gaztransport and Technigaz (GTT), the French designer of maritime liquefied natural gas storage and fuel tanks, said it received an order from its partner, China's Hudong-Zhonghua Shipbuilding, for the tank design of the first four LNG carriers for the QatarEnergy expansion project on behalf of the Japanese shipowner, Mitsui Osk Lines.

The Hudong-Zhonghua shipyard in Shanghai is a subsidiary of state-owned China State Shipbuilding Corp.

MOL, which has an operating fleet of almost 100 LNG carriers, had ordered the ships in April 2022 as it also increases its interests in the Chinese LNG shipping market.

GTT will design the tanks of these four new LNG carriers with a total of LNG tank capacity of 174,000 cubic metres per ship and the vessels will be fitted with the latest membrane containment system developed by GTT.

The deliveries of the four vessels  to serve the Qatar expansion project is scheduled for the third quarter of 2024 and the second quarter of 2025.

MOL announced in April 2022 it had signed a long-term charter contract for four newbuild LNG carriers with QatarEnergy.

Track record

“MOL's solid track record in building LNG carriers in China in addition to its performance in the LNG carrier business and safety in navigation and cargo handling earned high regard from QatarEnergy, leading to the successful conclusion of the contract.” MOL said at the time.

QatarEnergy has been developing the North Field Expansion Project to boost its LNG ouput.

The North Field expansion will increase Qatar's LNG production capacity from 77 million tonnes per annum to 126 MTPA with the carrier fleet programme alongside, which could amount to 80 vessels, including the replacement of older ships in the current fleet.

The scope of the first phase of the expansion at the Ras Laffan production complex involves an additional four Trains, each with 8.0 MTPA of output.

Qatar has the southern portion of the North Field in Gulf waters that will provide the huge feed-gas resources and the other part of the field is under the jurisdiction of neighbouring Iran. 

Japanese shipowner NYK Line said it signed a new long-term charter contract to supply a liquefied natural gas carrier to French energy major Total.