Technology and Ship Building Groups Agree Cooperation on LNG Efficiency Project

FINLAND – SOUTH KOREA – Technology group Wärtsilä and Samsung Heavy Industries (SHI) have signed a Joint Development Project (JDP) agreement aimed at establishing a more efficient solution for LNG Carrier and Shuttle Tanker vessels. The agreement was signed on 3 April at the LNG19 exhibition in Shanghai.

It is expected that the agreement, aimed at cost optimisation including both capital and operating expenditure, provides a level of equality that is greater than in normal shipyard/supplier relationships, which will benefit both parties and the industry as a whole, since it gives valuable opportunities for ‘important co-creation’. Timo Koponen, Vice President, Processing Solutions, Wärtsilä Marine, observed:

“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. 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.”

An important driver behind the JDP is the strong LNG carrier new building market. The pair say 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. Jin-Taek Jung, Executive Vice President, Engineering & Procurement Operations, SHI, commented:

“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.”

Photo: Jin-Taek Jung and Timo Koponen shake hands on the deal.