Sembcorp Marine has secured new contracts worth about S$175 million, for projects comprising the design and construction of a 12,000-cubic-metre (cbm) LNG bunker vessel as well as repair and modernisation works on 13 cruise ships.
12,000cbm LNG bunker vessel for delivery to MOL in 2021
To be constructed at Sembcorp Marine Tuas Boulevard Yard for Indah Singa Maritime Pte Ltd, a subsidiary of Mitsui O.S.K. Lines, Ltd. (MOL), the 112m long and 22m wide LNG bunker vessel will have two GTT Mark III Flex membrane tanks with a combined 12,000cbm capacity. This makes the vessel the largest of its kind to be built locally, in terms of size and LNG tank capacity. It is also Sembcorp Marine’s first LNG bunker vessel construction project.
Sembcorp Marine will fabricate the vessel’s unique membrane tanks under a licensing agreement with French LNG containment specialist GTT.
Compared to IMO Type ‘C’ LNG tanks, the superior Mark III Flex membrane tanks have lower internal pressure, temperature and boil-off rate; which translates into greater tank durability, safer fuel transfer operations and reduced cargo loss through evaporation. The Mark III Flex membrane tanks also weigh less and occupy less ship space, allowing the vessel to carry more cargo and consume less fuel during transportation.
For cleaner propulsion, the LNG bunker vessel will have dual-fuel engines running on LNG or marine diesel oil.
Upon its completion in early 2021, the vessel will be chartered to Pavilion Gas Pte Ltd for deployment in Singapore. Pavilion Gas is a subsidiary of Pavilion Energy Pte Ltd.
Cruise ship repair and modernisation projects
Sembcorp Marine’s cruise ship repair and upgrade business has started the year on a strong footing. Partnering with leading cruise brands such as Carnival Cruise Line, Royal Caribbean Cruise Line, Star Cruises, Norwegian Cruise Line and Star Clippers Monaco, the Group has 13 new cruise vessel repair and modernisation projects to be executed at its Admiralty and Tuas Boulevard yards.
Including the latest contracts, Sembcorp Marine’s cruise ship refits and upgrading track record now stands at 115 vessels over the past 10 years.
Commenting on Sembcorp Marine’s new contracts, President & CEO Mr Wong Weng Sun said: “We are very happy and grateful to have our customers’ trust in Sembcorp Marine’s ability to offer them competitive solutions of the highest quality. We are especially excited to work with MOL on building our first LNG bunker vessel. This project marries Sembcorp Marine’s ship design and construction expertise with GTT’s industry-leading membrane tank system. We are confident the outcome will be a sophisticated newbuilding that not only delivers optimal technical performance, but also helps MOL and Pavilion Energy contribute to the expected standard of LNG bunkering operations in Singapore.
“As Sembcorp Marine expands into new innovations, products and energy value chain solutions, we are also proud to retain our traditional excellence in ship repairs and upgrades. We are committing our best resources to complete the 13 new cruise ship repair and modernisation projects on time and to the satisfaction of our cruise operator partners.”
Sembcorp Marine expects a positive contribution to its earnings from the above-mentioned contracts. However, the contracts are not expected to have any material impact on the Group’s net tangible assets and earnings per share for the year ending December 31, 2019.