Korean liquefied natural gas (LNG) player Hyundai LNG Shipping has hired Singapore-headquartered Seatrium Limited on a favored customer contract (FCC) for repairs and upgrades of LNG carriers in its fleet. This deal is perceived to be the first long-term strategic partnership agreement between the two companies.
Thanks to the two-year contract, signed in Korea by Vice President of Hyundai LNG Shipping and Executive Vice President of Repairs and Upgrades at Seatrium, the Singapore-based firm will undertake a refit of a series of LNG carriers, with responsibilities in joint planning, information, and experience sharing with Hyundai LNG Shipping.
Alvin Gan, Executive Vice President of Repairs and Upgrades at Seatrium, explained: “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.”
The deal will see the two companies jointly work towards achieving sustainable targets in quality, health, safety, and environment (QHSE), cost efficiency, and timely deliveries, described as key performance indicators for high-quality LNG refit maintenance.
JinChul Hong, Vice President of Hyundai LNG Shipping, commented: “This strategic partnership marks a significant milestone for us. By collaborating with Seatrium, we aim to enhance our operational efficiency and instill the highest standards of quality, safety, and environmental sustainability in the maintenance of our LNG carriers.
“Our first LNG retrofit under the FCC agreement scheduled for repairs in Seatrium’s Admiralty Yard in Singapore is the Hyundai Utopia in May 2024, and we look forward to a fruitful and successful partnership with Seatrium.”
Seatrium has carried out 11 FSRU conversions since 2007 and converted what is deemed the world’s first floating liquefaction vessel (FLNG) in 2017, Golar Hilli, which is operating with a 100% uptime in Cameroon, Africa.
The company has established a strong presence in the expanding LNG market, as confirmed by a batch of new multi-billion dollar contracts, which were secured last month, with an aggregate value of S$350 million (around $258.9 million) for vessel repairs, upgrades, and conversions.
A few days ago, the Singapore-based firm won a deal with SBM Offshore for the topside fabrication and integration of the FPSO Jaguar, which will work at ExxonMobil’s Whiptail oil development on the Stabroek block off the coast of Guyana.
