Singapore-based Zicom secured orders worth S$60M (US$45M) to design and supply LNG propulsion systems for several oil product tankers being built in China for a ‘leading European shipowner’
Zicom said it will supply the LNG propulsion systems to Chinese shipbuilder Guangzhou Shipyard International Co between 2022 and 2023. While the European shipowner was not disclosed, Guangzhou Shipyard International has secured orders to build a number of dual-fuel tankers, most recently two LNG-powered LR tankers for Hafnia Shipping.
“This order underscores the gathering momentum in the transformation of our marine sector,” said Zicom group chief executive Sim Kok Yew. “IMO 2020 rules mandate that all oceangoing vessels are required to reduce sulphur emissions… to 0.50% with effect from 1 January 2020. This has made it mandatory for existing vessels to install scrubber filtration systems or to use high grade low sulphur fuel in place of diesel to comply,” he said. “Each of these choices has proven to have its limitations. New vessels would install gas engines instead of diesel engines and use LNG propulsion to power the engines. The growth prospects for our technology are therefore expected to be strong.”
In a way, the order itself grew out of Zicom’s own transformation, Mr Sim noted. “As our deck machinery products hit a downturn about five years ago, the group recognised that a transformation of our marine sector was critically needed. To continue to leverage on the group’s network and knowledge of the industry, it decided three years ago to develop technology for green energy propulsion systems for oceangoing vessels. This direction enables the group to expand its footprint to cover the entire shipping industry and not just focus on offshore marine applications.”
While noting the offshore marine sector was showing some positive signs, Mr Sim said short-term prospects for Zicom’s deck machinery products was “not apparent,” but added gas processing projects remain strong.
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