Seatrium renews LNG carriers repair contract with GasLog and Shell
Seatrium renews LNG carriers repair contract with GasLog and Shell - Offshore Energy
Seatrium renews LNG carriers repair contract with GasLog and Shell
Singapore-based Seatrium, formerly Sembcorp Marine, has renewed its long-term favored customer contract (FCC) with GasLog LNG Services and Shell International Trading and Shipping Company (STASCO) to provide ship repairs, refurbishment and upgrading for their LNG carriers.
The contract will see Seatrium provide ship repair services from 2024 to 2029, with an option for further renewal.
Specifically, it involves the repairs, refurbishment, and upgrading of the two companies’ combined fleet of 43 LNG carriers docking in South East Asia to Seatrium Repairs and Upgrades, a wholly-owned subsidiary of Seatrium.
It also supports joint planning, information, and experience sharing to achieve sustainable targets in HSE (Health, Safety, and Environment), quality, cost efficiency, and timely deliveries.
Kostas Karathanos, Chief Operating Officer of GasLog LNG Services, said: ”We are delighted to renew our favoured customer agreement for another five years. We have enjoyed many years of partnership to refit the majority of our fleet here and trusted Seatrium in the conversion of our Floating Storage Regasification Unit (FSRU).
“The recent tender we jointly ran with STASCO indicates that Seatrium remains a competitive shipyard offering high quality services. This aligns with our strategic direction of optimising costs and leveraging our competitiveness. We look forward to strengthening our relationship as we work towards safe, timely and on-budget deliveries for the conversions, repairs and upgrades of our LNG carriers.”
Alvin Gan, Executive Vice President, Repairs and Upgrades, Seatrium, added: “We are honoured and delighted to have our exclusive partnership agreement renewed with both GasLog and STASCO. Partnering with world-class vessel owners increases our market share of LNG repairs and upgrades and enhances our capabilities as a world-class shipyard group.
“The selection of Seatrium as the LNG refit partner in Singapore is a major boost to Singapore’s status as a major global hub. We thank both GasLog and STASCO for their trust in us and we are confident that our long-term partnership will deliver mutual benefits and continuous improvements to all partners involved.”
The latest contract renewal comes on the heels of Seatrium’s FCC with Greek shipping company TMS Cardiff Gas for the repairs and upgrades of LNG carriers.
Related Knowledge Center: Liquefied natural gas
Driven by plentiful natural gas produced from shale plays, the United States began exporting liquefied natural gas in 2016 when the Sabine Pass terminal in Louisiana opened and shipped its first cargo. Since then, additional capacity, or trains, have been added to Sabine Pass, and terminals have become operational in Cameron Parish, La.; Hackberry, La.; Cove Point, Md.; and Corpus Christi, Texas. The Energy Information Administration projects that U.S. LNG export capacity will reach 8.9 billion cubic feet per day (Bcf/d) by the end of 2019, making it the third largest in the world, behind Australia and Qatar. The tariff war with China has the potential to impact some final investment decisions for additional terminals in the coming months.