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LNG Barge Under Construction in Durban, South Africa

The first steel plate was cut for the construction of an LNG barge vessel at the Southern African Shipyards (SAS) in Durban’s Bayhead several weeks ago.

The 143m long and 34m wide vessel will be the only one of its kind in the world, according to Aldworth  Mbalati, CEO of DNG Energy, the owner of the vessel. It will be christened “DNG Genesis”.

The barge is expected to be completed by the end of 2019. It will have a crew of 40, when it is in operation.

DNG Energy is planning to invest more than $5Billion in creating a Pan African LNG supply network over the next five years, Mr. Mbalati, claims. It is an ambitious plan which will mean work for thousands of people. It would be an 8 000 ton energy barge, the largest vessel by weight ever to be built in Africa, the CEO explains.

The company has a floating storage terminal and the idea is that LNG from exporting countries will be stored at the terminal and then offloaded onto the Durban-made barge which “as the work horse” will operate in Southern Africa waters, transporting energy to customers in South African and the member states of Southern Africa Development Community SADC.

The exact location of the floating storage terminal-which is currently in operations internationally-will only be unveiled at the launch in March 2019, Mbalati said.

One ranking VIP at the steel cutting ceremony was British veteran anti-apartheid campaigner Lord Peter Hain, who is one of DNG Energy’s company’s non-executive directors. Lord Hain is a former British Minister of State for Energy and Competitiveness in Europe.

Mbalati argues that LNG will dramatically improve the economy, reasoning that if SA Inc. stops the large spend on importing refined fuel, the (local currency rand will grow stronger and the country’s GDP will improve.


Hyundai Heavy Industries, Close To Take Over of Daewoo Shipbuilding

Hyundai Heavy Industries (HHI) Group has signed a definitive agreement with state owned Korea Development Bank (KDB) to acquire Daewoo Shipbuilding & Marine Engineering (DSME).

HHI is the world’s largest shipbuilding company. Its headquarters are in Ulsan, South Korea. HHI was founded in 1972 by Chung Ju-yung as a division of the Hyundai Group, and in 1974, completed building its first ships

The definitive agreement builds on the heads of agreement (HoA) that was signed between HHI and KDB on 31 January this year. It will see KDB will make a contribution-in-kind to Korea Shipbuilding & Offshore Engineering (KSOE, named tentatively), to be established as a sub-holding company spun off from HHI to control the group’s shipbuilding companies including HHI, by transferring its shares in DSME in return for an equity stake in KSOE.

The definitive agreement states, amongst other things, that HHI and KDB will perform due diligence of DSME and HHI, respectively; the two parties will exercise their best efforts to complete the transaction unless the due diligence reveals a fact or matter that would have a material adverse effect on either of the target companies; and the parties will commit no unlawful act that would adversely affect the standalone business operations of HHI and DSME until the acquisition is officially authorised by the government authorities, According to the statement,.

HHI and KDB also pledge to guarantee employment security of DSME workers and continued relationships with DSME’s current business partners. The two parties are entering into this agreement “with an ultimate aim of stimulating employment and revitalising the local economy”, they jointly state, promising to maintain the current management structure of DSME, keep employment of DSME’s workers secure and continue the business relationships with the existing subcontractors and suppliers of DSME.

“HHI Group’s post-acquisition strategy is, to have its four shipyards, which would now include DSME as the latest addition to the group’s portfolio of shipbuilding business, focused on design, manufacturing and sales activities, which will be controlled by KSOE specialised in R&D and engineering, with a view to taking HHI Group’s competitiveness to the next level,” declared Kwon Oh-gap, Vice Chairman and CEO of HHI Holdings,


South Africa About To Get its First Offshore Oil and Gas Services Base

Odion Max John, in Cape Town

South Africa’s National Ports Authority (TNPA) has selected a private port terminal operator to build and operate the country’s first offshore supply base (OSSB) at the Port of Saldanha, in the Western Cape.

SA’s first dedicated and customised facility supporting offshore oil and gas is to be developed by Saldehco, a South African company comprising principal shareholder HARPS Holdings Pte Limited and local partner Semona Pty Limited.

The facility, which will involve investments of some $150Million over the coming five years, will provide services to offshore oil and gas companies operating along Africa’s coastline.

Saldehco was selected following a competitive bidding process conducted by the Transnet National Ports Authority (TNPA), which is mandated to concession port terminals to private operators in line with Section 56 of the National Ports Act.
Its two partners- HARPS- has energy, property and marine interests in several countries, and -Semona Pty- is black-women-owned energy company.

As port landlord and planner, TNPA is providing berth infrastructure for the OSSB at the port’s general maintenance quay. Saldehco, meanwhile, is responsible for providing warehousing, workshops, office facilities, as well as equipment such as cranes and other rubber-tyred equipment to operate the terminal.

The OSSB will offer services to vessels supporting offshore exploration and production activities, including fabrication of offshore structures, as well as provision of marine bunkers and lubricants.

© 2019 Festac News Press Ltd..