This contract signifies the first time that a major LNG operator has committed itself to a long-term longevity program to extend its vessels’ future trading life when the vessels progressively reach their 20th year in service.
The contract, signed in by Mr. John Charles, Commercial Manager of North West Shelf Shipping Service Company Pty Ltd (NWSSSC) on behalf of IGTC, and Ms Wong Lee-Lin, Executive Director of Sembawang Shipyard Pte Ltd, is the first such contract of IGTC’s Longevity Project, which involves the life extension of 6 LNG carriers over a period of 6 years.
Sembawang Shipyard is a subsidiary shipyard in the Sembcorp Marine Group.
NWSSSC is equally owned by six venture partners; BHP Billiton Petroleum Pty Ltd, BP Australia Shipping Pty Ltd, Chevron Australia Transport Pty Ltd, Japan Australia LNG (MIMI) Downstream Services Pty Ltd, Shell Development (Australia) Pty Ltd and Woodside Petroleum Holdings Pty Ltd. It is the main shipping advisor to International Gas Transportation Company Limited. (IGTC), a company registered in .
With the signing of this contract, Northwest Sanderling, the first of 6 Moss-Rosenberg type LNG carriers from IGTC, is scheduled to undergo life extension/longevity work and upgrading program in Sembcorp Marine’s Sembawang Shipyard at an estimated cost of $23.7 million in June 2009.
This contract is not expected to have any material impact on the net tangible assets and earnings per share of Sembcorp Marine for the year ending December 31, 2008.