American Bureau of Shipping (ABS) has launched the industry’s first LNG Cargo Ready notation this year’s Gastech exhibition and conference.
This notation confirms that an ethane carrier is capable of future modification to trade LNG cargoes. ABS is the first classification society to develop requirements and notations for ethane carriers that assist in assessing the level of LNG cargo readiness, the classification society said in its statement.
According to ABS that unveiled the notation jointly with GTT, the notation identifies potential barriers and assesses LNG capability of equipment and systems installed on the very large ethane carriers (VLEC).
The French LNG containment system specialist, GTT, struck a tank design deal on Tuesday for six VLECs which would be built by Hyundai Heavy Industries (HHI) and Samsung Heavy Industries (SHI), all six of which would be LNG-ready further proving the potential of such a notation in the market.
Aditya Aggarwal, ABS director of global gas development, said: “With the expected flurry of new orders for VLECs, the industry is looking for ways to de-risk project investments. One of the most viable options is to ensure newer VLECs can be used for transportation of LNG in the future.
“The ship owners and investors require the necessary information in evaluating the capital risk to assess the need for additional future investments needed to “upgrade” the asset to carry LNG instead of ethane.”
Adnan Ezzarhouni, general manager of GTT China, added: “The LNG readiness for VLEC is a promising way to overcome financial hurdles that stakeholders are facing on the nascent ethane shipping, and it is achievable at marginal cost.“