Hamworthy hits LNG jackpot

Hamworthy has won orders and a letter of intent totalling £48 million ($92 million) to supply eight LNG reliquefaction systems to the first LNG carriers to use slow-speed diesel propulsion engines. The newbuildings, which are the world?s largest LNG carriers, were ordered from Korean shipbuilders.

Hamworthy plc has won orders and a letter of intent to supply liquid natural gas reliquefaction systems for eight LNG carriers on order at three shipyards in South Korea. The orders comprise of two shipsets from Hyundai Heavy Industries (HHI), two shipsets from Samsung Heavy Industries (SHI), and a letter of intent to place an order for four shipsets from Daewoo Shipbuilding & Marine Engineering (DSME). The DSME-built quartet will have a capacity of 210,000m3 each and the other four ships will be 215,000m3.

The eight shipsets of LNG reliquefaction systems, worth a total estimated sales value of £48 million ($92 million), will be delivered to the shipyards between April and August 2006. The contract includes engineering the systems, delivery of all the equipment, installation supervision, and commissioning. The ships will start to be delivered from the second half of 2007. Hamworthy has also agreed options with the Korean shipbuilders to supply a further 11 shipsets of LNG reliquefaction systems. These comprise six options from DSME, three from SHI and two from HHI.

Tore Lunde, director for Hamworthy’s liquid natural gas activities, said: “Not only are these LNG carriers the first to be built with low-speed diesel engines and LNG reliquefaction systems, but they are the largest LNG carriers ever to have been ordered.”

The LNG carriers were ordered by two separate joint ventures between QatarGas Transport Co and German shipowner Pronav and US based consortium OSG. This is part of a wider joint venture between ExxonMobil and Qatar Petroleum planning to bring LNG from the Arabian Gulf to the United Kingdom. All of the ships will be chartered to transport LNG from Qatar Gas II to a new gas processing terminal being built at Milford Haven, Pembrokeshire, Wales, where 15.6 million tonnes of LNG will be processed each year. Imports to Milford Haven will commence in 2007.