Seatrium Limited has clinched a Favoured Customer Contract (FCC) with Hyundai LNG Shipping, announced the Mainboard-listed company on May 21. The contract includes the refit of a series of liquefied natural gas (LNG) carriers over the next two years, with responsibilities in joint planning, information and experience sharing with Hyundai LNG Shipping.
The partnership agreement was signed in South Korea by Hong Jin-Chul, vice president, Hyundai LNG Shipping and Alvin Gan, executive vice president, repairs and upgrades, Seatrium.
The two companies will jointly work towards achieving sustainable targets in the areas of quality, health, safety and environment (QHSE), cost efficiency and timely deliveries, which are key performance indicators for high-quality LNG refit maintenance.
Hyundai LNG Shipping’s Hong says their first LNG retrofit under the FCC agreement that is scheduled for repairs in Seatrium’s Admiralty Yard in Singapore is the Hyundai Utopia this month. “We look forward to a fruitful and successful partnership with Seatrium.”
Seatrium’s Gan says: ““We are honoured to partner with Hyundai LNG Shipping on this FCC. This agreement not only underscores our leadership in LNG carrier repairs and upgrades but also reflects our commitment to delivering excellence and innovation in every project we undertake. We look forward to a successful collaboration that will benefit both parties and contribute to the advancement of the LNG industry.”
Seatrium claims to be the world’s leader in repairs and upgrades of LNG carriers, holding a track record of 11 floating storage regasification unit (FSRU) conversions since 2007.
See also: CGS International keeps 'add' on Seatrium, sees 'high likelihood' of bigger contract wins
Hyundai LNG Shipping is transporting 5.23 million tons of domestic LNG, 13% of the annual import volume of 40 million tonnes.
Hyundai LNG Shipping operates a total eight LNG carriers: six Moss-type LNG carriers and two Membrane-type LNG carriers. Among them are the latest two LNG carriers of the Membrane type (MEGI Engine), which were added after receiving the shale gas order in 2014.
As at 9.26am, shares in Seatrium are trading flat at $1.56. Seatrium completed a 20-to-1 share consolidation prior to the market open on May 9.
