Chevron Shipping Company, the subsidiary of NYSE-listed Chevron Corporation, has entered into an agreement with Sembcorp Marine’s (SembMarine) wholly-owned subsidiary Sembcorp Marine Repairs & Upgrades Pte. Ltd, to reduce the carbon intensity of their liquefied natural gas (LNG) fleet operations.
Sembcorp Marine will provide Chevron with engineering, procurement, installation, and commissioning (EPIC) services and expects to complete the work by mid-2025. It is said to have significant expertise in complex LNG fleet modifications and has a proven track record for lower carbon solutions for the maritime industry.
Under the agreement, Chevron will install new technologies aboard its vessels to support its energy transition goals. The new technologies, which include a reliquefication system, hull air lubrication, and a new gas compressor, will lower the group’s cargo boil-off, lower fuel consumption and increase volumes of cargo delivered, thereby lowering the group’s carbon footprint.
“We are excited to work with Sembcorp Marine to help us advance our lower carbon goals,” says Mark Ross, president of Chevron Shipping Company. “We believe LNG will be a key component of the global energy transition for years to come, and Chevron is focused on continuing its disciplined capital investment in our LNG fleet.”
“Sembcorp Marine is committed to advancing environmental sustainability through the development of industry-leading solutions. Working with Chevron on its LNG fleet upgrades is an immediate way to accelerate the lowering of the carbon footprint in the maritime industry, to achieve the International Maritime Organization’s target to reduce emissions from international shipping by at least half by 2050, compared to the levels in 2008,” says Wong Weng Sun, president and CEO of SembMarine.
Shares in SembMarine closed at 12.8 cents on Feb 24.
