South Korea-based GAS Entec has entered into a memorandum of agreement (MoA) with refrigeration cargo shipper SEoIL Agency to collaboratively build a new liquefied natural gas (LNG) fuelled reefer carrier.
Both the parties will construct, invest, charter and operate the 155,000ft³ reefer carrier as part of the new deal.
The MoA also includes the shipping of the proposed vessel to SEoIL Agency’s existing operating route by the final quarter of 2018.
GAS Entec is also set to take responsibility for the investment and financing initiatives for the new reefer carrier's construction, in addition to leading the entire newbuilding project.
The project works will include the selection of shipyards, as well as supply of engineering design service and major equipment.
SEoIL Agency will look after the long-term charter contracts and operations of the refer carrier, while also offering technical and commercial information on the founding and operation of reefer carrier to GAS Entec.
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GAS Entec said in a statement: “This vessel, which will be recorded as the world's first LNG fuelled reefer carrier, will become GAS Entec’s state-of-the-art of LNG technology.”
GAS Entec and Dongwha Entec have outlined plans to jointly develop a LNG refrigerant system, and will apply the cycle and generator as a dual fuel engine in cooperation with Wartsila.
GAS Entec is also planning to apply membrane LNG cargo hold technology and replace an existing cargo hold insulation system with products developed by Hankuk Carbon.
GAS Entec added: “If this new refrigerated cargo carrier is proven to have a 30% operating cost savings compared to the existing one, it will be big impact to hundreds of homogenous newbuilding markets around the world.”
The company currently provides engineering services for the shipbuilding industry.
Image: GAS Entec is planning to build world’s first LNG-fuelled reefer carrier. Photo: courtesy of GAS Entec Co. ltd.