Sembcorp Marine snags a multi-million deal to build the LNG bunker vessel as well as to repair and modernize 13 cruise ships.
According to The Straits Times, the construction of the bunker vessel will be carried out at Sembcorp Marine Tuas Boulevard Yard for Indah Singa Maritime Pte Ltd, a subsidiary of Mitsui OSK Lines (MOL). The proposed design for the LNG vessel showed that the deal was to make a 112-meter long and 22-meter wide liquefied natural gas (LNG) boat that has the capacity to carry 12,000 cubics of materials.
The vessel will be fitted with two GTT Mark III Flex membrane tanks to obtain the capacity target. As per the Sembcorp Marine press release, this size makes the proposed LNG vessel as the largest of its kind to be built locally.
The $175 million deal has been signed and agreed upon by the Pavilion Gas, the Singapore-state owned LNG company. The exact terms for the financial aspect of the deal were not revealed but to make sure that the contract will be fulfilled, Mitsui OSK Lines set a 2021 deadline for Singapore's Sembcorp Marine.
Once completed and delivered to MOL, the bunker vessel will be exclusively leased to Pavilion Gas for deployment in Singapore. Based on the report, as agreed with MOL, the boat will be managed by Sinanju Tankers Holdings, Singapore's bunker tanker operator.
Commenting on the partnership between their companies, Sea Trade Maritime quoted managing director of Sinanju, Ju Kai Meng as saying in a statement, "We are delighted to partner MOL to promote the development of infrastructure and competencies in LNG fuel deliveries for Singapore. MOL's expertise in LNG and our strong foundation in fuel oil bunkering augurs well for successful collaboration in meeting the growing demand for LNG as a marine fuel."
He added, "While Singapore has entrenched itself as the world's largest bunkering port, our foray into LNG bunkering is still in its early stages. Our company is committed to extending our unstinting support towards developing Singapore as a leading LNG bunkering hub as we have in the marine fuel oils sector."
As mentioned, aside from the construction of the LNG vessel, part of the contract was for Sembcorp Marine to repair and upgrade 13 cruise ships. The repair is also expected to be done in the Tuas Boulevard yards and will begin soon. Finally, this latest multi-million dollar contract is expected to boost Sembcorp's business and hasten the company's recovery in terms of earnings for this year.
