Flexible and Modular "Natural gas operating fleet"

Wärtsilä Corporation, Trade press release, 13 April 2017 at 10 am EET

The technology group Wärtsilä and COSCO shipping Heavy Industry Co (CHI) have announced the joint development of a natural gas operating fleet concept, and this design has now obtained Lloyd's Register's (LR) Approval in Principle (AiP) certificate. The development project was carried out under the terms of a memorandum of understanding cooperation signed in June 2016 between the three companies.

The aim of the concept is to offer global operators a more efficient and economical fleet design that meets current and anticipated environmental requirements according to the classification rules. The fleet comprises four vessels; a pusher tug, LNG storage barge, LNG regasification barge, and a floating liquefaction natural gas barge. The pusher tug can be used to transport the three barges.

The concept's main advantages are its operative flexibility, and the fleet's competitive CAPEX and OPEX costs. The pusher tug makes all the units mobile and transportable. The number and choice of units will depend on the project, since not all of the concept's units are necessarily needed for every project. For example, the concept can be utilized to act as an LNG carrier (using only the pusher tug and LNG storage barge), or it can be used for more complex projects involving liquefaction and regasification systems (using all units). The modular design of Wärtsilä's liquefaction and regasification units makes this an ideal concept for gas plants in the 50-200 MW range. The low draft design also makes it very attractive for gas power plant projects in South East Asia.

The project has attained the authority of China's National Patent Office and has been conceptualised by CHI. The design and engineering development, especially in relation to the hinge joint, mooring arrangement, ship type and seakeeping analysis, has also been carried out by CHI. Wärtsilä has supported this project through its extensive experience and expertise in supplying LNG systems for the complete gas value chain. It is expected that when ordered, the fleet vessels will include Wärtsilä dual-fuel engines and steerable thrusters, the Wärtsilä LNGPac gas storage and supply system, a Wärtsilä liquefaction module, a Wärtsilä LNG cargo handling system, and a Wärtsilä regasification module.

"This is a new and innovative fleet concept that is designed to create better efficiencies for companies involved in any part of the natural gas supply chain. By combining CHI's know-how in this field with Wärtsilä' s vast technological competences, we have together taken yet another step forward in creating an optimal LNG supply chain," says Sanjay Verma, Director, Business Development, South East Asia, Wärtsilä Marine Solutions.

"We have worked together with Wärtsilä for many years in various marine and offshore projects. Wärtsilä has the technical leadership and a broad portfolio of products and solutions in LNG systems for marine applications, and is a partner that we enjoy working with. This natural gas operating fleet concept is a new and exciting development, which should bring extensive customer benefits. CHI will continue to focus on LNG related business, and extend its market influence, research and development for LNG projects." says Mr.Zhao Zhijian General Manager of CHI technical R&D center.

"LR has completed a preliminary hazard identification (HAZID) study for this innovative design. This study covered the fuel gas supply system, the transfer of LNG between the vessels, as well as the mooring arrangement of the fleet, and as a result the Approval in Principle certificate has been issued," says Ms Wei Ying, Principal Specialist & General Manager, Shanghai Technical Support Office, Lloyd's Register Marine & Offshore.

Link to image Caption: Sanjay Verma, Wärtsilä, Jim Smith, Lloyd's Register and Zhao Zhijian, CHI with the Natural Gas Operating Fleet concept's AiP Certification.

Media contacts:

Ms Marit Holmlund-Sund Senior Manager Marketing, Communications, Marine Solutions Wärtsilä Corporation Tel: +358 10 709 1439 marit.holmlund-sund@wartsila.com

Mr Feng Bin Senior Proposal Manager Commercial Headquarters COSCO Shipping Heavy Industry Co., Ltd. Mobile: 86-15821664227 fengbin@cosco-shipyard.com

Ms Nicola Eyles Head of Brand & External Relations, Marine & Offshore Lloyd's Register Tel:  +44 330 414 1001 Mobile: +44 7968 622165 nicola.eyles@lr.org

About Wärtsilä: Wärtsilä is a global leader in advanced technologies and complete lifecycle solutions for the marine and energy markets. By emphasising sustainable innovation and total efficiency, Wärtsilä maximises the environmental and economic performance of the vessels and power plants of its customers. In 2016, Wärtsilä's net sales totalled EUR 4.8 billion with approximately 18,000 employees. The company has operations in over 200 locations in more than 70 countries around the world. Wärtsilä is listed on Nasdaq Helsinki. www.wartsila.com

About COSCO SHIPPING HEAVY INDUSTRY CO., LTD. (hereinafter referred to as CHI) The shipping industry cluster of COSCO SHIPPING Corporation Group, is a large heavy industry enterprise for ship & offshore newbuilding/repair/conversion/demolition, and marine supporting service, integrated by COSCO Shipyard Group Co. Ltd., COSCO Shipbuilding Industry Company, China Shipping Industry Co. Ltd., Devoted to building China's leading, world-class shipbuilding and marine engineering enterprises. http://en.chi.coscoshipping.com/

About Lloyd's Register Lloyd's Register (LR) is a global engineering, technical and business services organisation wholly owned by the Lloyd's Register Foundation, a UK charity dedicated to research and education in science and engineering. Founded in 1760 as a marine classification society, LR now operates across many industry sectors, with some 8,000 employees in 78 countries. LR has a long-standing reputation for integrity, impartiality and technical excellence. Our compliance, risk and technical consultancy services give clients confidence that their assets and businesses are safe, sustainable and dependable. Through our global technology centres and research network, LR is at the forefront of understanding the application of new science and technology to future-proof our clients' businesses. http://www.lr.org/