Marine pump specialist Svanehøj acquires LNG firm
By Jack Burke04 February 2022
TCS makes high-end gauging systems for LNG plants, terminals and carriers
Betting on continued growth in liquefied natural gas (LNG) in the maritime market, Danish marine pump specialist Svanehøj has acquired Wärtsilä Tank Control Systems (TCS), the maker of high-end gauging systems for both LNG plants and terminals as well as LNG carriers.
According to the company, global LNG supply could reach 449 million tons by 2025, up 23% from 2020, and this will increase the need for liquefied gas storage in the coming years.
The acquisition of TCS was recently approved by the French authorities. As a result, Svanehøj is establishing a new independent business unit for land-based activities in Calais, France, where TCS currently has a production facility. The new company will be named Svanehøj France, and Morten Christian Larsen will take the position as director of almost 40 employees. He is already director of Service and Aftersales at Svanehøj and will manage the two businesses in parallel.
“We are acquiring a company that has historically been at the forefront of systems that enhance the safety of liquified gas storage,” Larsen said. “Svanehøj is already a leading specialist in marine fuel and cargo pumps for liquefied gas, and we see obvious synergies in relation to both new sales, service and aftersales, which we will use to good advantage.”
TCS has been owned by Wärtsilä since 2006, but has its roots in Whessoe, a specialist in equipment and systems for cryogenic and low-temperature storage. With the prospect of significantly increased demand for liquefied gas, Svanehøj plans to invest in the product line at the Calais factory, which is particularly well known in the industry for its unique turnkey tank gauging solutions. Furthermore, Svanehøj sees great potential in using the acquisition as an opportunity to offer pumping solutions for LNG terminals on land.
Svanehøj said it pursues an overall strategy to support a fast and complete transition to zero-carbon maritime fuels, regardless of propellant. Already today, Svanehøj’s deepwell fuel pump solution is fully compatible with e-fuels such as green ammonia, methanol, and hydrogen. A focus area in the new Svanehøj France will therefore be to develop gauging systems for zero carbon fuels for both marine and land-based applications.
In addition to the land-based business in Calais, Svanehøj also acquires a maritime business with production, sales, and service of measuring systems for LNG vessels. This part of TCS has activities in the UK and Singapore and employs 15 people, who will now become part of Svanehøj’s global service business.