HD Hyundai Global Service, a ship service
subsidiary of HD Hyundai Group, has announced that it has signed
contracts on June 6th with Cool Company Ltd (NYSE: CLCO / CLCO.OL
“CoolCo”), an owner and operator of LNG vessels, to retrofit five
LNG carriers with sub-coolers for LNG boil-off reliquefaction
(“reliquefaction units”). The contract value is approximately 10M
US Dollars per vessel.
A reliquefaction unit is a device used to
re-liquefy the boiled off gas (BOG) generated during the operation
of LNG cargo tanks, either returning the gas to the cargo tank or
preventing natural evaporation using sub-cooled LNG. When a vessel
is in operation, boiled off gas (“BOG") is consumed as fuel by the
propulsion engine. However, without a reliquefaction unit, during
periods of reduced vessel speed, during port stays, or while
utilizing the vessel for floating storage, the BOG needs to be
forcibly burned, resulting in the loss of LNG cargo and the
emission of greenhouse gases, leading to environmental
pollution.
The utilization of a reliquefaction unit is
known to be effective mainly in LNG carriers equipped with tri-fuel
electric propulsion (TFDE) or two-stroke dual-fuel (DF) engines,
and HD Hyundai Global Service is currently receiving inquiries from
its customers for additional reliquefaction unit retrofit work
similar to that being performed for CoolCo.
At the International Maritime Organization’s
(“IMO”) 78th Marine Environment Protection Committee meeting in
2022, a correction item was adopted so that LNG carriers could
deduct fuel consumption equivalent to the amount of power used in
cargo reliquefaction equipment when calculating the ship’s Carbon
Intensity Indicator (“CII”), which has been adopted as IMO’s
short-term greenhouse gas measure and has been incorporated into
certain international environmental regulations that tighten over
time.
As a leading provider in ship services
industries, HD Hyundai Global Service has a long history of
providing innovative solutions to meet the needs of its customers.
The retrofit of the reliquefaction unit is a testament to the
company’s commitment to providing its customers with the best
possible service.
CoolCo is a growth-oriented owner, operator and
manager of fuel-efficient liquefied natural gas (“LNG”) carriers.
Using its integrated, in-house vessel management platform, CoolCo
provides charterers and third-party LNG vessel owners with modern
and flexible management and transportation solutions, delivering a
lesser-emitting form of energy that supports decarbonization
efforts, economic growth, energy security, and improvements in
quality of life. CoolCo intends to leverage its industry
relationships to make further accretive acquisitions of in-service
LNGCs, and to selectively pursue newbuild opportunities. The
retrofit of the sub-cooling units is an important step towards
achieving CoolCo’s ESG goals.
HD Hyundai Global Service plans to incorporate
reliquefaction units supplied by Air Liquide, a French company
specializing in this technology, and will be responsible for the
overall design, product supply, installation and commissioning.
Mr. Ki-dong Lee, CEO of HD Hyundai Global
Service, said, “We will contribute to the optimized response to
global warming in the energy transportation sector through various
ship energy-saving device retrofits, including the retrofit of the
reliquefaction unit.”
Mr. Richard Tyrrell, CEO of CoolCo, added, “We
are pleased to work with Hyundai Global Service on this important
initiative, which is a central component in our LNGe conversion
process. These reliquefaction units will provide our charterers
with valuable flexibility when it comes to managing the seasonal
fluctuations in LNG demand, in particular by supporting efficient
travel at lower speeds, idling and floating storage applications.
In addition, these retrofits will enhance the long-term value and
competitiveness and reduce the environmental footprint of what will
become our LNGe vessels.”
■ Photo caption: HD Global Service signed a
contract for re-liquefaction unit retrofit with Cool Company
Management AS on June 6th. In the photo, on the left, Mr. Lee
Ki-dong, CEO of HD Global Services, and on the right Mr. Richard
Tyrrell, CEO of CoolCo.
For further information, please contact:
ir@coolcoltd.com
Forward-looking Statements
This press release contains forward-looking
statements within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995, including statements with respect to
CoolCo’s agreement for a time charter of a vessel, including
the terms of the charter and addition to backlog, statements with
respect to the increasing volume of LNG coming online and industry
players securing tonnage, expected benefits to CoolCo and other
non-historical statements. Forward-looking statements are
typically identified by words or phrases, such as “about”,
“believe,” “expect,” “plan,” “goal,” “target,” “strategy,” and
similar expressions or future or conditional verbs such as “may,”
“will,” “should,” “would,” and “could.” These statements are based
on current expectations, estimates, assumptions and projections and
you should not place undue reliance on them. Forward-looking
statements do not guarantee future performance and involve risks
and uncertainties. These risks and uncertainties include risks
relating to this contract, future industry conditions and other
risks indicated in the risk factors included in CoolCo’s Annual
Report on Form 20-F for the year ended December 31, 2022 and other
filings with the U.S. Securities and Exchange Commission. These
forward-looking statements are made only as of the date of this
document. We do not undertake to update or revise the
forward-looking statements, whether as a result of new information,
future events or otherwise.
This information is subject to the disclosure
requirements in Regulation EU 596/2014 (MAR) article 19 number 3
and section 5-12 of the Norwegian Securities Trading Act.
Cool Company Ltd. Hamilton,
Bermuda
Questions should be directed to: c/o Cool
Company Management Ltd - +44 207 659 1111
Richard Tyrrell - Chief Executive OfficerJohn
Boots - Chief Financial Officer
Cool (NYSE:CLCO)
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