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SHI wins VLCC order
PIPELINES & TRANSPORT
SOUTH Korean shipbuilder Samsung Heavy Industries (SHI) has won a KRW147bn ($124.6mn) contract to build two very large crude carriers (VLCCs).
Under the deal with its undisclosed Panama- nian client, SHI has agreed to deliver the Suez- max tankers by March 2021. e tankers will be equipped with ballast water treatment systems (BWTS) and Selective Catalytic Reduction (SCR) in order to comply with new International Maritime Organisation (IMO) rules that will come into e ect from January 2020. e shape of the tankers as well as their propellers will also be tailored around the shipowner’s intended routes in order to improve fuel e ciency.
SHI will also install its in-house developed smart ship system, SVESSEL, in the two tankers to improve operational e ciencies. e system will be able to plan the most fuel-e cient routes, provide real-time equipment performance mon- itoring, diagnose equipment failures and control the tankers remotely. e contract brings SHI’s orderbook for this year to 16 vessels with a com- bined value of around $3.3bn, which is 42% of the company’s 2019 target of $7.8bn.
e order for VLCCs comes a er the ship- yard announced in June that it won a KRW450bn (381.3mn) order for two LNG carriers from an unnamed shipowner from the Bermuda region. e vessel will be delivered by the end of June 2022, SHI said on June 7.
Growing demand for LNG in the Asia-Paci c region is helping generate new orders for trans- port vessels and, in order to win more of these contracts, the shipyard has unveiled plans to open an LNG technology research and develop- ment (R&D) centre by December 2020.
e 3,630-square metre facility will be located at Geoje Shipyard and will allow SHI to research core technologies such as gas liquefaction and cryogenic storage systems. The shipbuilder added that the “shipbuilding and ocean LNG integrated demonstration facility”, for which a groundbreaking ceremony was held on July 10, would also support the development of local LNG technology expertise.
SHI has already won 10 LNG carriers order this year and CEO Nam Joon-woo said: “Building inte- grated demonstration facilities is very meaningful in that it can increase competitive edge in orders through [the] establishment of technical skills in [the] LNG eld. We will lead the market by secur- ing [the] world’s best LNG technology.”
BHP issues LNG transport tender
AUSTRALASIA
PIPELINES & TRANSPORT
BHP has issued a tender for the world’s first LNG-fuelled bulk carrier, on July 15. The Australian miner said this would be for the transportation of up to 27mn tonnes of iron ore. The company noted the importance of eliminating NOx and SOx, while also reduc- ing CO2 emissions.
“We recognise we have a stewardship role, working with our customers, suppliers and oth- ers to in uence emissions reductions across the full life cycle of our products,” said BHP’s mar- itime vice president, Rashpal Bhatti. “ rough this tender, we are seeking potential partners who share our ambition of lowering emissions to the maritime supply chain.”
The company said the tender was open to a select group of bidders. In addition to seeking LNG-fuelled transportation for up to 10% of its iron ore, BHP said it was also examining other ways of lowering emissions and increasing productivity in the freight sector.
“While LNG may not be the sustainable homog- enous fuel of choice for a zero-carbon future, we are not prepared to wait for a 100% compliant solution if we know that, together with our partners, we can make signi cant progress now,” Bhatti said. “ is new tender adds to the work BHP is doing with customers, suppliers and parties along our value chain to in uence emissions reductions from the transport and use of our products.”
e Australian miner has recently signed an agreement to work with Mitsubishi Develop- ment in pursuing a reduction in emissions. e BHP Mitsubishi Alliance (BMA) is Australia’s largest coal producer.
In a May strategy briefing, the company noted the growing market for gas in the medium term and that there were “abundant new supply options”, in order to demonstrate BHP’s invest- ment plans. Where this might put the company o from investing in gas production, it does also seem like a good reason to exploit this feedstock as a transport fuel.
Week 28 17•July•2019 w w w . N E W S B A S E . c o m P9
