Singapore's Sembcorp Marine to build two compressed gas liquid carriers for Caribbean fuels supply project

Sembcorp Marine Specialised Shipbuilding and SeaOne Holdings' SeaOne Caribbean unit have signed a letter of intent to produce the vessels.
Sembcorp Marine Specialised Shipbuilding and SeaOne Holdings' SeaOne Caribbean unit have signed a letter of intent to produce the vessels.PHOTO: SEMBCORP MARINE

SINGAPORE - A Sembcorp Marine subsidiary is set to design and build at least two large compressed gas liquid carriers for a Houston gas distribution company, the offshore and marine services provider said on Monday (Sept 18).

Sembcorp Marine Specialised Shipbuilding and SeaOne Holdings' SeaOne Caribbean unit have signed a letter of intent to produce the vessels, which will be used in a Caribbean-based project to transport gas and gas liquids in the same cargo.

One tricky aspect of hauling such a load is that gases and liquids need different temperatures and pressures for safe storage.

As part of the deal, Sembcorp Marine will design the 366m-long vessels, which are each to have a capacity of two billion cubic feet.

They will ferry compressed gas liquid from Gulfport, in the United States state of Mississippi, to terminals in the Caribbean as well as Central and South America.

The company did not disclose the likely dollar value of the deal if it comes off.

SeaOne chairman and chief executive Forrest Hoglund said in a media release that his company's Caribbean Fuels Supply Project will, with the help of the new ships, "provide to the region the lowest cost of fuel while reducing emissions substantially".

The letter of intent is not expected to have any material impact on Sembcorp Marine's net tangible assets and earnings for the year to Dec 31, 2017.

Sembcorp Marine shares added five cents, or 3.2 per cent, to close at $1.63, before the announcement.