In an official statement on Thursday, HD Hyundai Marine Solution (formerly Hyundai Global Service) announced the contract and outlined the tasks ahead. Besides installing reliquefaction units, the company will also integrate air lubrication tech and new gas compressors into the specified LNG carriers.
One of the LNG carriers getting an upgrade is the Asia Energy, a 2014 vessel with a capacity of 160,000 cubic meters. This move by Chevron highlights their commitment to making their LNG carrier fleet more efficient and environmentally friendly. This isn't the first collaboration between HD Hyundai Marine and a major LNG carrier operator, as they previously worked with CoolCo to retrofit five TFDE LNG carriers. The Chevron contract is valued at $50 million, around $10 million per vessel.
Reliquefaction units are crucial in LNG operations, as they deal with boil-off gas (BOG) generated during the cargo tank's operation. HD Hyundai Marine's expertise has made it a preferred provider for such installations. So far, the company has secured $100 million in orders for reliquefaction units on eight LNG carriers, including the CoolCo contract. However, there's a substantial market opportunity, with around 100 LNG carriers lacking reliquefaction systems.
The estimated cost to equip these vessels is $700 million, indicating a high demand for reliquefaction solutions in the LNG shipping industry.
Chevron, through its shipping unit, has actively been working to reduce emissions and improve operational efficiency in its LNG carrier fleet. Last year, Chevron's shipping unit partnered with a subsidiary of Singapore's Sembcorp Marine for reliquefaction system installations and other advanced technologies. Chevron's shipping unit manages a fleet of ten LNG carriers, including the Asia Energy.
