Sembcorp Marine announced Monday that it has entered into an agreement to acquire a 12 percent stake in Norway's GraviFloat AS for $4 million, with a right to increase its stake up to 20 percent by further equity injection. GraviFloat was formed to design, deliver and operate re-deployable, gravity-based, modularised LNG (liquefied natural gas) and LPG (liquefied petroleum gas) Terminals for installation in shallow waters. The investment represents a new business venture for the Sembcorp Marine group.
GraviFloat’s near-shore LNG terminals are designed to be installed in shallow waters and are fully fixed to the seabed when in operation. GraviFloat LNG terminals can be designed for a variety of purposes and at almost any size. They can be designed as an LNG receiving and regasification capacity liquefaction terminal, as a mobile unit for stranded gas production and liquefaction, or for temporary production of associated gas to support oil production, to name a few more common applications.
Harald Vartdal, CEO of GraviFloat AS, said: “We are pleased to welcome Sembcorp Marine as a stakeholder and partner and look forward to working together in new projects ahead. The GraviFloat system is developed as a cost effective solution to meet the trend toward natural gas fueling and is expected to help accelerate the build-out of natural gas terminal infrastructure, particularly in near-shore locations.”
Wong Weng Sun, president and CEO of Sembcorp Marine, said: “Our investment in GraviFloat represents the Group’s ongoing quest to stay ahead and actively participate across a broad spectrum of the offshore oil & gas value chain. We are excited and keen to work together with Harald and his team in providing more cost effective solutions for our
The GraviFloat technology (patent pending) allows the LNG terminal to be fully built and completed at a shipyard and installed in shallow waters to facilitate direct ship loading of LNG. The GraviFloat terminals are designed to offer a more cost-competitive solution compared with FSRUs (floating storage and regasification units) and land terminals and can be designed for both liquefaction and receiving terminal services.
The acquisition is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of Sembcorp Marine for the year ending Dec. 31.
About GraviFloat AS
GraviFloat was incorporated in Norway in 2006 as a spin-off of LMG Marin, a Marine Engineering and Naval Architecture company. The company is headquartered in Bergen.
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