Thursday, June 2, 2011

Japan finances Greek newbuilds

Korea provides green-ship financing

Korea Finance Corporation has pledged $46m to global

shipowners in the form of lower interest rates on loans this year under a new plan to boost shipping designs that help reduce CO2 emissions.

To obtain the loans to build new ships, owners will have to obtain certification from Det Norske Veritas Korea to prove that vessels being built in South Korea will use technology that will reduce emissions, the bank said in an e-mailed statement.

“We are taking an initiative in this plan because this will help generate demand for environmentally friendly ships and speed up the development of relevant technology,” Korea Finance said in the statement.

The move appears to be an effort to show off South Korean yards’ capabilities in creating designs that reduce carbon emissions in an increasingly competitive market.

Published : June 2, 2011

Source: Asiasis

SLS reborn as SHINAsb

SLS Shipbuilding, South Korean shipbuilder of middle standing, has changed its corporate name to SHINAsb.

SHINAsb said Wednesday that it held a new vision announcement ceremony and an inaugural ceremony for new representative director Kim Young-guk.

The company said it came to change the corporate name as it seeks to do away with dishonor caused by major shareholder change and debt work-out.

New chief executive Kim said, "With the new name SHINAsb, the challenge to become a leader in midsize shipbuilding market has just begun."

"We will try to achieve revenue of KRW 1trn ($931m) this year, and win and deliver 20 vessels each annually."

Meanwhile, SHINAsb also held a contract signing ceremony on the same day for two plus two 51,000-dwt chemical carriers booked by India's GESCO last month.

Published : June 2, 2011

Source: Asiasis


MAN extends ultra-long-stroke program

MAN Diesel & Turbo is adding more bore sizes to its ultra-long-stroke engine program. The updated program supplements the G80ME-C9 engine, introduced in October 2010, with G70ME-C9, G60 ME-C9 and G50ME-B9 engines.

The G-types have designs that follow the principles of the large-bore Mk-9 engine series that MAN Diesel & Turbo introduced in 2006. Their longer stroke reduces engine speed, paving the way for ship designs with unprecedented high-efficiency.

At the introduction of the G80ME-C9, Ole Grøne, Senior Vice President Low-Speed Sales and Promotions, MAN Diesel & Turbo, said: "MAN Diesel & Turbo always follows developments in the shipping market closely and we have kept a close eye on the trend for fuel optimization in recent years. As such, we have experienced great interest in the G-type engine during extensive consultation with industry partners and are currently working on a variety of projects with shipyards and major shipping lines. As a result, we have reached the conclusion that the introduction of the G-type engine program is both viable and timely."

Mr. Grøne adds: "The speed and power of these G-type engines have been carefully evaluated with a view to optimizing propulsion efficiency while, at the same time, facilitating their adoption by shipyards."

Tankers and bulk carriers have traditionally used MAN B&W S-type engines with their long stroke and low engine-speed as prime-movers, while larger container vessels have tended to use the shorter-stroke K-type with its higher engine speed.

Following efficiency optimization trends in the market, MAN Diesel & Turbo has also thoroughly evaluated the possibility of using even larger propellers and thereby engines with even lower speeds for the propulsion of tankers and bulk carriers. Larger container vessels are now increasingly being specified with S80ME-C9 and S90ME-C8/9 engines because of the opportunity they offer to employ larger propeller diameters; an S90ME-C9 engine will replace a corresponding K98 with the same cylinder count.

Such vessels may be compatible with propellers with larger diameters than current designs, and facilitate higher efficiencies following adaptation of the aft-hull design to accommodate a larger propeller. It is estimated that such new designs offer potential fuel-consumption savings of some 4-7 percent, and a similar reduction in CO2 emissions. At the same time, the engine itself can achieve a high thermal efficiency using the latest engine process parameters and design features.

Final drawings for the structure, moving parts and fuel equipment of the first G-type – the G80ME-C9 – are scheduled for delivery by mid-2011 with piping and gallery drawings scheduled to follow in the latter part of 2011, depending on order dates.

Published : June 2, 2011

Source: 조선속보



Wednesday, June 1, 2011

ABS‘ sweeping management changes

Samsung seals $3bn LNG-FPSO

South Korea's Samsung Heavy Industries said on Tuesday that it has signed a $3.026bn order for LNG-FPSO for Royal Dutch Shell after receiving a Notice to Proceed (NTP) with construction of the facility from the oil major.

The contract for an LNG floating production storage and offloading vessel (FPSO) expires September 30, 2016, Samsung said in a regulatory filing.

Samsung revealed $3.026bn includes $1.175bn for Hull inked on April 15 2010.

With this latest mega offshore facility order, Samsung has penned new orders worth $10.5bn so far this year, achieving 91% of its annual order target of $11.5bn.

Meanwhile, Shell Development (Australia) Pty Ltd and Technip-Samsung consortium held a ceremony for NTP for the world's first LNG-FPSO at Samsung's Geoje shipyard on May 30.

The consortium will conduct engineering, procurement, construction and installation on the LNG-FPSO to be deployed into Prelude gas field off northwestern Australia.

Detailed designing of the facility will be done in France and Malaysia and constrcution will be carried out at Samsung's Geoje yard.

Steel cutting is scheduled for early next year for the Prelude LNG-FPSO which will produce 3.6m tons of LNG, 1.3m tons of condensate and 0.4m tons of LPG per annum from 2017.

Published : June 1, 2011



Norden books STX MR resales

Norden has taken over four distressed newbuilding contracts at STX Offshore & Shipbuilding of South Korea in a bid to boost its fleet of product tankers.

The Danish tanker and bulker owner says it expects the 49,000-dwt vessels to hit the water in the first and second quarters of 2013. The deal includes pair of options for two additional units.

In the past, Norden’s expansion strategy focused on second-hand acquisitions but it told investors that more favourable deals can be made by taking over and upgrading technical features of newbuilding contracts in default.

It noted: “Another important factor for Norden has been that vessels from STX are of high quality and are therefore expected to be priced favourably in the second-hand market. In addition, the time of delivery is attractive as Norden expects an improvement in rates and asset prices in the product tanker market until 2013.”

Norden expects the medium-range vessels to earn rates of around $12,000 per day upon delivery.

The company did not say how much the new vessels cost, but brokers say that similar units are fetching between $35m and $40m in the current market.

Published : June 1, 2011



Turkish & Dutch get lifeline

Turkey’s shipbuilding industry and Dutch marine equipment companies will receive the support of the Dutch and Turkish governments.

According to Turkish shipping sources in Istanbul, the initiative is aimed at upgrading Turkey’s ageing coastal fleet estimated to be around 600 vessels, many of which are 30 years old — or even older.

The first stage of the project would see 100 coastal ships — defined as 5,000 dwt or more — begin construction in Turkey. The orders would be made in 10-vessel batches and work is expected to start this year.

The agreement, signed in principle by the two governments, should see a flow of newbuilding orders into Turkish shipyards backed up by Dutch finance and carrying an upside for Dutch marine equipment suppliers.

The ships will be built to a Turkish design but the equipment would come from Dutch companies. It is understood that the equipment comprises a significant part of the overall cost of building such ships.

The financial structure of the agreement has still to be ironed out. The project’s financing could proceed in one of two ways, according to Maurice Wijmans, a director at Dutch institution NIBC. Turkish shipowners could be financed by Turkish banks which would, in turn, be supported by Dutch financial institutions.

Published : June 1, 2011



NYK tests hybrid power PCC

NYK Line's solar-power-assisted car carrier Auriga Leader (60,213 gross tons) will in June be used for shipboard tests of a newly developed hybrid power supply.

The car carrier will also be fitted with a ballast-water management system and adapted to use low-sulfur fuel.

The power generation and endurance of the photovoltaic panels on Auriga Leader have been undergoing shipboard tests since the completion of the vessel on December 19, 2008.

The tests have shown that providing a stable power supply from the photovoltaic panels is difficult because even a slight change in the weather has a significant influence on the amount of power generated.

It was also found that attempting to make the solar power system bigger to gain more output and to increase its dependibilty could present problems with regard to stable operations because of fluctuations in the power supply.

The hybrid power supply system which is now being installed has been studied since fiscal 2009. It has been jointly developed by NYK Line, Kawasaki Heavy Industries Ltd., the Monohakobi Technology Institute (MTI) and Nippon Kaiji Kyokai (ClassNK) and was selected as a subsidized project by Japan's  Ministry of Land, Infrastructure, Transport and Tourism (MLIT) under its "Support for Technology Development for Curtailing CO2 from Marine Vessels" program.

Aiming to cut CO2 emissions, NYK Line and MTI have been seeking to develop a stable onboard power supply for use should an unstable renewable energy source such as solar power be adopted. KHI has been working to develop a hybrid power supply system for vessels through the use of its self-developed large nickel hydrogen batteries known as Gigacell. ClassNK is supporting these projects as part of assistance provided through a joint research scheme based on industry demands.

Charging and discharging a fluctuating amount of solar power generated by this hybrid power supply system will stabilize the supply to the vessel's electrical power system. This will also minimize output fluctuations from the diesel power generator and secure a stable power supply.

Shipboard tests on Auriga Leader will aim to attain a stable power supply under harsh marine conditions through the combination of solar power generation and the hybrid power supply system, and the effects will be verified. Based on the experiment results, NYK Line and MTI will aim to develop an even larger solar power generation system for vessels, while KHI will seek to commercialize the hybrid power supply system for vessels.

NYK Line, KHI, MTI, and ClassNK will continue to respond proactively to environmental issues through further innovations in technology.

Published : June 1, 2011

Source: Asiasis


Tuesday, May 31, 2011

Hyundai wins LNG carriers

George Prokopiou has inked a newbuilding deal with South Korea's Hyundai Heavy Industries for up to three LNG carriers for his Dynagas LNG outfit, becoming the third Greek shipowner to book new LNG carriers this year after Peter Livanos’ GasLog and John Angelicoussis’ Maran Gas Maritime.

The move is the first of a fresh spate of ordering expected from the Greek-linked liquefied natural gas shipping community with both GasLog and Maran Gas apparently keen to finalise further newbuilding orders in the coming weeks.

Dynagas took its existing three modern, steam turbine powered LNG carriers from HHI in 2007 and 2008.

It has now ordered two new vessels for 2013 delivery from the same builder, plus one option which must be declared by December.

The vessels are said to be of about 160,000 cu m and, in common with all the latest orders in the sector are for tri-fuel diesel-electric ships.

A source close to the project said that the ships have been ordered without lining up employment in advance and that they were not linked to the Gazprom Global LNG tender in which the Greece-based owner recently emerged as one of the finalists.

Dynagas has been a champion of a nascent spot market in LNG and is currently operating its vessels under charters of about one year in duration.

Mr Prokopiou’s latest investment in the sector comes against a background of firming LNG carrier rates and optimism for the longer term.

The Dynagas ships lag four newbuildings of 155,000 cu m that GasLog already has on order from Samsung Heavy Industries for 2013 delivery.

Two further vessels of the same size are likely to be finalised shortly with Samsung again the most likely builder.

But GasLog chief executive Jeppe Jensen would not comment on further expansion.

“I am happy to say that we have confirmed long term solutions for our four newbuildings on order,” he said.

Even though the company has yet to confirm that it is looking to place contracts for two further vessels, market sources are already mentioning either Chevron or Shell as the most probable charterers of the next pair.

Maran Gas, too, stands on the brink of contracting two more carriers from its favoured builder, Daewoo Shipbuilding & Marine Engineering, it has been confirmed.

Those familiar with the project suggest that the order may be finalised within June. Three very large crude carriers that the Angelicoussis Shipping Group had on order at Daewoo were substituted earlier this year for three 156,000 cu m LNG carriers.

The first of the trio is scheduled for delivery in the second half of 2013 with the two sister vessels to follow in 2014 and 2015.

It is understood that the vessels, which — stemming from contract conversions — are costing an estimated $220m apiece, are currently uncovered by charters but Maran may seek to fix at least one within this year.

Assuming the additional two, which are straight LNG contracts, are completed, Maran Gas’ owned LNG fleet is projected to expand to 10 units.

Published : May 31, 2011

Source: Asiasis


Pipavav inks $665m order

India's Pipavav Shipyard sealed a huge newbuilding order with the Indian navy and then said its full year results had leapt from red to black.

Pipavav will build five gunboats for just under INR 3bn ($665m), marking the company’s entry into military shipbuilding.

Pipavav also said it would build a second drydock at its shipyard to focus on military vessels and plans to enter the debt market to raise the necessary funds.

The company plans to change its name to Pipavav Defence and Offshore Engineering Company to reflect the change direction.

The order may prove something of a lifeline for Pipavav which has struggled to come good on some of its orders.

France’s Setaf-Saget cancelled four panamax bulkers because of long delays. An order for another four vessels by John Fredriksen’s Golden Ocean is also badly delayed.

Net profit of INR 398m for the year ended 31 March compared to a INR 486m loss last year.

Operating profit jumped from INR 2.16bn from INR 609m in 2010.

Sales increased from just under INR 7bn to 9.2bn for the year.

Published : May 31, 2011

Source: Asiasis



Drillship Orders Continue

The speculative rush to build ultra-deepwater drillships is likely to slow down in the short-term market, but in the long run, drillship orders would go on steadily.

The fast pace of ultra-deepwater drillship orders has been flagged by some offshore shipowners as positive evidence of coming activity for high-spec support vessels but an unwanted newbuilding bubble of drillships could also point to trouble for that market.

The Jefferies & Co analysts recently visited South Korea to gauge the sentiment of senior management at Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries.

“After the surge in drillship orders that was largely stimulated by attractive pricing and financing terms by the three major Korean yards, demand for new orders appears likely to moderate near term as most major contractors now have multiple projects in process and few others appear to be in a rush to build on spec for a 2014 delivery,” wrote the analysts in their key takeaways from the yard trip.

“Factoring in a likely order for two drillships by Rowan and the exercise of most options currently outstanding, Hyundai and Daewoo indicated they are basically full for 2013 deliveries, while Samsung indicated that they still have two to three slots available for 2013 delivery.”

The analysts say poor tanker and boxship markets have spurred Hyundai to move on the UDW sector for drillships, serving to increase capacity, but its aggressive pricing has also cut the pricing power of Samsung and Daewoo.

The risk of a glut of orders looks more likely in 2014 and beyond.

“Essentially, we believe that current construction prices, estimated to now be approximately $640m, combined with current day-rate levels could produce a steady pace of new orders over a longer time period,” wrote the analysts.

Published : May 31, 2011

Source: Asiasis



More Chinese to see losses

More shipbuilders in China may see losses this year, because of rising labor and raw material costs and effect of the changes in foreign exchange rates, according to the latest report released by the China Association of the National Shipbuilding Industry.

In the first quarter, there were 1,519 shipbuilders of the designated size and above in China, of which 313 enterprises suffered losses, 3 more than in the same period of last year. Losses of the 313 companies totaled RMB 1.11 billion during the period, up 28.8% year on year.

In the first three months, the 1519 shipbuilders realized RMB 142.2 billion in core business revenue, 30.1% more than in the corresponding period of 2010. Revenue from shipbuilding business rose 27.8% year on year to RMB 106.3 billion, and that from manufacturing of ship-related products surged 40% year on year to RMB 17.8 billion.

The 1519 shipbuilders earned a combined RMB 10.3 billion in gross profits in the first quarter, up 23.4% year on year, but saw sales margin fall 0.4 percentage points to 7.2% in the first three months.

In the first four months, China's new ship orders increased 6.6% to 13.62 million deadweight tons, of which 81.2% were for exports, and its output of completed ships climbed 1.2% year on year to 18.82 million DWT, of which 85.6% were for exports.

Outstanding orders had amounted to 183.76 million DWT at the end of April, 6.2% less than at the end of 2010.

During the period from January to April, the 1519 ship companies saw gross industrial output jump 25.4% year on year to RMB 234 billion, of which RMB 180.3 billion was from the shipbuilding business, up 24.3% year on year. The export delivery value of the 1519 ship firms increased 19.5% year on year to RMB 101 billion during the period.

Published : May 31, 2011

Source: Asiasis


Aker wins rig equip deal

Norway's Aker Solutions said Monday it has won contracts to supply complete drilling equipment packages for two new deepwater drilling rigs being built by China’s Cosco shipyard.

The combined value of the contracts is $195 million, and includes options for a further two units, said Aker Solutions.

The equipment is due to be delivered to both units during 2012 and 2013.

Cosco announced on the same day that it has firmed up an order with Norway’s Sevan Drilling for two newbuild cylindrical ultra-deep water drilling rigs valued at $525 million each.

"Project management of the work will be carried out in Norway, with global procurement and final delivery in China," said an Aker Solutions spokesperson but declined to comment on whether the packages were for the Sevan deal.

Published : May 31, 2011

Source: Asiasis