Strong LNG Carrier Newbuild Market Spurs Wärtsilä, SHI Partnership

By Jack Burke04 April 2019

Wärtsilä and Samsung Heavy Industries (SHI) have signed an agreement aimed at establishing a more efficient solution for liquefied natural gas (LNG) carrier and shuttle tanker vessels including overall cost optimization, including both CAPEX and OPEX.

The companies said the agreement, signed at the LNG19 exhibition in Shanghai, will build on the sharing of knowledge and experience between SHI and Wärtsilä. It is expected that the agreement, which provides a level of equality that is greater than in normal shipyard/supplier relationships, will benefit both parties and the industry as a whole, since it gives valuable opportunities for important co-creation.

“At Wärtsilä we are committed to creating greater efficiencies, better environmental sustainability, and improved safety for our customers. The joint development with SHI will support this commitment,” said Timo Koponen, vice president, Processing Solutions, Wärtsilä Marine. “SHI is a major high-tech, high-value shipbuilder with a number one newbuilding share in various vessel markets. We are, therefore, delighted to be partnering with them in a project that will ultimately benefit owners and operators around the world.”

The companies said that an important driver for the agreement is the strong LNG carrier newbuilding market. There are potentially dozens of new vessels to be ordered for transporting increasing volumes of LNG from both new and extended export LNG terminals in Africa, Australia, Middle East and USA, the companies said.

“We look forward to working with Wärtsilä to co-develop LNG carriers and shuttle tankers with improved efficiency. We are both market leaders in our spheres, and this joint development underscores the mutual respect and appreciation that we have for each other’s knowledge and experience,” said Jin-Taek Jung, executive vice president, Engineering & Procurement Operations for SHI.

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