LNG

Gaztransport and Technigaz (GTT), the French LNG storage technology company for shipping and onshore, said the Supreme Court of Korea rejected GTT's appeal on licence and technical assistance deals with South Korean shipyards.

The Paris-based company had appealed against the decision of the Seoul High Court confirming the company's obligation to separate, in whole or in part, the “Technology License and the Technical Assistance” agreements if requested by the South Korean shipyards it has dealings with.

GTT had filed its appeal against the Korea Fair Trade Commission (KFTC) decision in December 2022.

“GTT acknowledges this very surprising decision, which comes only three months after the decision of the same Supreme Court of Korea to suspend the effects of the decision of the Seoul High Court,” said GTT.

The French company said it considered that its provision of technical assistance and engineering services “were essential to ensure the safety and performance” of its solutions and that its “unique expertise” was crucial to the safety of LNG maritime transport.

Defending interests

“Convinced of the sound basis of its contractual provisions, GTT is still committed to defending its interests and those of the entire LNG industry, and is considering the most appropriate actions to be taken in order to maintain its rights,” stated the Paris-based company.

“The company does not anticipate any significant financial impact in the short or medium term,” it added.

The KFTC in December 2022 had ordered GTT to allow the Korean shipyards, upon their request, to perform all or part of the technical assistance services currently included in the technology licenses and to pay €9.5 million ($10.40M) as an administrative fine.

The loss of the Korea appeal comes as GTT continues to expand its relationships with Chinese companies and shipyards where it has similar accords and is building the LNG tanks storage technology business.

On the occasion of the visit of French President Emmanuel Macron’s to Beijing on April 6, 2023, PipeChina Engineering Technology Innovation Co. signed a cooperation agreement for the evaluation and further promotion of GTT’s membrane containment tank technology for LNG projects in China.

PipeChina Group is currently operating seven LNG receiving terminals in China and three new LNG import projects are under construction.

As the largest operator of LNG infrastructure in China, PipeChina said it was keen to expand its cooperation with GTT.

Adnan Ezzarhouni, General Manager of GTT China, explained that GTT had already delivered onshore tanks to the Chinese.

These were for a peak-shaving project at Hejian in Hebei province, operated by Huagang Gas, as well as Phase I of the giant Beijing Gas Tianjin-Nangang onshore LNG terminal and the company was seeking additional contracts.

GTT has major collaborations with major Chinese shipyards such as Hudong-Zhonghua Shipbuilding, a subsidiary of China State Shipbuilding Corp., and Jiangnan Shipbuilding located northeast of Shanghai on Changxing Island at the mouth of the Yangtze River.