Algeria’s Sonatrach Signs Deal With Hyundai Heavy Engineering For Two LNG Carriers

Hyproc Shipping Company, an Oran-based subsidiary of Algeria’s state-owned hydrocarbon corporation Sonatrach, has signed a contract with South Korea’s Hyundai Heavy Industries (HHI) for the construction of two twin liquefied natural gas (LNG) tankers with a capacity of 171,800 cubic metres (m3) each.

The head of communications at Hyproc, Khaled Sellami, said in a statement here Thursday that the 635 million US dollar contract provided for the option of construction of a third tanker.

The two tankers are to be delivered by the end of 2016, he said, adding that 10 per cent of the funds for the two tankers would be provided by Hyproc while the remaining 90 would would be through a loan from the External Bank of Algeria (BEA).

The two carriers will be equipped with advanced and environment-friendly maritime technologies in order to ensure their safe navigation.

The acquisition of the LNG carriers is part of a programme of modernization of the company’s fleet. These two major acquisitions will be followed by others and should enable the Sonatrach Group, through Hyproc, to strengthen its LNG transportation capacity and its position on the world energy markets.

The contract followed a long process of evaluation by the company’s engineers which culminated in late 2012 in a call for tender to shortlist shipyards.

The different technical steps that followed led to the selection of three South Korean shipyards — Daewoo Shipbuilding Marine Engine LTD (DSME), Hyundai Heavy Industries LTD (HHI) and Samsung Heavy Industries LTD (SHI).

The financial bid opening of the three shipyards took place last August with HHI shipyard clinching the deal.

Hyproc SC currently has 16 ships — eight LNG carriers, six liquefied petroleum gas (LPG) carriers and two bitumen carriers.
Source: Bernama