TECO secures a contract with NGSCO
21 July 2008
TECO Maritime ASA secures new contract with National Gas
Shipping Company, Ltd. The value of the contract is approx. USD
1.230.000 and is to be completed in 2008. The projects will begin in
August / September this year.
(Lysaker, 21 July 2008) TECO Maritime ASA (TECO) has entered into a general
maintenance agreement with National Gas Shipping Company, Ltd onboard another five of
their vessels, TECO is already onboard one vessel from National Gas Shipping Company,
Ltd (NGSCO).
Bjarne Eia, Commercial Director for TECO says in a comment that “We have worked hard
to secure these contracts and we are very happy to see that NGSCO continue to entrust
TECO with work. This will further strengthen our standing with potential Middle Eastern
clients. TECO currently has approx. 20 employees in UAE and this contract will ensure
further development and expansion of business in the Middle East.”
NGSCO
NGSCO was formed in December 1993 to cater for the shipping requirements of Abu
Dhabi Gas Liquefaction Company Limited (ADGAS). Since the start of the export of
Liquefied Natural Gas (LNG) from Das Island in 1977, the shipping requirements had been
met by chartering third party LNG carriers. However, in conjunction with the expansion of
the liquefaction plant on Das Island and the agreement for a further 25 years business with
Tokyo Electric Power Co. (TEPCO) in Japan, it was decided that new ships would be
required to meet-ADGAS’s-commitment.
It was decided that the vessels would be demise owned by NGSCO on an initial 25 years
charter and NGSCO as the owning company would employ managers to cover the manning
and day to day management of the vessels. NGSCO operates the LNG vessels, supervises
and monitors the appointed ship managers, in 2004 NGSCO commenced taking over the
full management of its 8 vessels.
In addition to the supply of LNG shipping to ADGAS, NGSCO has a contract of
affreightment for the carriage of LPG from Das Island and it charter a Sulphur vessel from
ADNATCO. Also, there is a separate shipping service agreement between NGSCO and
ADGAS under which NGSCO supplies shipping advice and expertise to ADGAS.
TECO Maritime ASA
TECO Maritime ASA is the world’s leading operator in the area of maintenance of ballast
tanks onboard ships during voyage. By avoiding off-hire periods during which the ships are
not generating income, the ship owners will save considerable amounts of money using
TECO’s services. Our experience is that shipyards normally are able to finish work on
maximum 1,500 m2 of ballast tanks per day. With a daily rate for VLCC’s in the range of
USD 100,000 to USD 200,000, and daily rates for offshore vessels ranging from USD
200,000 to USD 600,000, the owners stand to lose considerable income with vessels laying
off-hire in shipyards.
As of today TECO is the largest operator in the market for maintenance of ballast tanks
during voyage. The market potential is considerable, with more than 9,000 vessels worldwide
currently targeted as potential customers and an estimated yearly total maintenance
market for these vessels of more than 1 billion USD. Frontline, together with BW Gas,
Høegh, Golar, Ugland, Teekay, NGSCO, Ocean Rig and others are forming the fundament
of the TECO customers.
The market for maintenance of ballast tanks is driven by international conventions,
regulations and class requirements which are actively being followed up by all coastal
states’ marine officials, oil companies, environmental organizations, insurance companies
and classification societies, amongst others.
Teco Maritime ASA
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