ABB wins milestone contract with China’s leading LNG shipyard

2 February, 2014 – ABB will provide advanced electrical propulsion systems for four LNG carriers built by Hudong-Zhonghua Shipbuilding Group.

Zurich, Switzerland, February 2nd, 2015 – ABB, the leading power and automation technology group, announced that it will deliver advanced electrical propulsion systems for four LNG carriers under construction by Hudong-Zhonghua Shipbuilding (Group) Co., Ltd. The LNG vessels are a joint venture between China National Offshore Oil Corporation (CNOOC), China LNG Shipping (Holdings) Limited (CLNG) and Teekay, and will operate under 20-year time-charter contracts with Methane Services Limited, a wholly-owned subsidiary of BG.

LNG carriers are highly sophisticated in terms of technology and are specially designed to transport LNG at a low temperature of minus 162 degrees Celsius. They are regarded as the “super freezer cars of the sea” and “the pearl on the crown” in the world shipbuilding industry. According to a research report released by Clarkson Research Services Limited in the UK, an authoritative consultancy in the global shipbuilding industry, more than 80 LNG carriers will be needed annually in the world by 2022.

Under the contract, ABB will provide the vessels with medium voltage generators, medium voltage switchboards, propulsion drives, propulsion transformers, propulsion motors and propulsion control systems, together with the installation and commissioning of the equipment and training. The state-of-the-art electrical propulsion system offered by ABB delivers both environmental and cost benefits from lower fuel consumption. It also reduces emissions while it improves the maneuverability of the vessels.

“China has developed into one of the leading shipbuilders in the world through a high level of competence in the design and building of LNG vessels. As a leading supplier of electrical systems for the marine industry, ABB continues to deepen cooperation with customers like Hudong-Zhonghua Shipbuilder and utilize our rich industrial experience and technical expertise to support the further development of China’s shipbuilding industry,” says Heikki Soljama, Managing Director for ABB’s Marine and Ports business.

For the marine industry, ABB’s extensive product portfolio also includes electrical control systems for the LNG liquefaction process, waste heat recovery systems for container ships, turbochargers for marine diesel and gas engines and services to optimize asset performance, such as remote diagnostics to ensure highest possible level of uptime. With a complete value chain of R&D, manufacturing, sales and engineering services, ABB is contributing to the development of the modern shipbuilding industry in China.

ABB has extensive experience across the LNG supply chain, providing complete power and automation solutions to ensure safe, environmentally friendly and profitable LNG operations. The company delivers projects to the entire LNG value chain, from gas production to regasification and distribution. It also provides services that extend the lifetime of assets in the LNG value chain.

About Hudong-Zhonghua Shipbuilding

Hudong-Zhonghua Shipbuilding (Group) Co., Ltd., a core subsidiary of China State Shipbuilding Corporation, has one management center with three manufacturing entities as well as more than 20 affiliated investment enterprises. It has an integrated industrial chain of ship facilities and is a comprehensive group with shipbuilding, offshore and steel structure business areas. It is a shipbuilder capable of successfully building large LNG carriers and one of the most competitive shipbuilders in China. ABB previously provided medium voltage main switchboards and medium voltage distribution transformers for six LNG steam turbine carriers built by Hudong-Zhonghua Shipbuilder.

About ABB

ABB (www.abb.com) is a leader in power and automation technologies that enable utility, industry, and transport and infrastructure customers to improve performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 145,000 people.