Keppel To Deliver First Wind Turbine Installer
Keppel Corporation’s Keppel FELS shipyard is on track to deliver one of the world’s largest and most advanced multi-purpose offshore wind turbine installer to the Seafox Group, ahead of time and with an impressive safety record. Tan Chuan-Jin, Singapore’s acting minister for manpower said at the vessel naming ceremony that the vessel marks a significant milestone in the capabilities and innovation by a Singaporean shipyard. Tan also remarked that Keppel’s ability to deliver the complex vessel more than a month ahead of schedule was in line with the government’s push for productivity. Built to Keppel’s proprietary Multi-Purpose Self-Elevating Platform design, the vessel will be a new-generation offshore wind turbine installation vessel that can withstand harsh offshore environmental conditions all year round in the deep waters of the North Sea. The vessel has already been chartered by Aarsleff Bilfinger Berger Dan Tysk to install offshore wind foundations in the 288 megawatt Dan Tysk wind farm in the German sector of the North Sea.
Significance: The global offshore wind market is set to see a nine-fold increase in investment between 2011 and 2025 from US$6 billion to US$52 billion. The cultivation of expertise in the building of such vessels could thus provide further growth opportunities for Keppel FELS.
Tiong Seng Secures $137m Contract With SIM
Construction and property developer, Tiong Seng Holdings, announced that it has clinched a major contract worth $137 million from the Singapore Institute of Management (SIM). The contract entails the extension and alterations to SIM’s existing campus at 461 Clementi Road. The extensions consist of a proposed part 4-storey, part 9-storey extension with two basement carparks. The contract will however, not have any material impact in the current financial year ending 31 December 2012. The substantial contract win comes after the firm has secured a previous $229 million contract from NTUC Fairprice Co-operative. In its 1H12 earnings report, management said that construction demand continues to be healthy in Singapore. Construction contracts are expected to total between $21 billion to $27 billion during the year, lower than the $32 billion recorded in 2011, primarily due to lower demand from the private sector.
Significance: Tiong Seng’s order book stood at $1.29 billion (excluding the most recent contract win) as at 30 June 2012 with orders expected to be fulfilled within the next 12 to 30 months.
China Aviation Oil Abandons JV Plan For Tanjung Langsat Project
Jet fuel trader, China Aviation Oil (CAO) announced the cessation of joint venture plans to design, construct, develop, operate, manage and maintain an oil storage terminal at the port of Tanjung Lansat, Johor, Malaysia. CAO has entered into a joint venture agreement with Centralised Terminals, in which CAO had acquired a 26 percent stake. CAO said in its media communiqué that the reason for the abandonment of the joint venture project was due to the fact that the company felt that certain key conditions precedent to the agreement would require a much longer time than previously envisaged. Both partners have thus agreed to let the agreement lapse on 20 August 2012 as it would no longer be commercially viable to continue with the project. Meng Fangqiu, chief executive officer of CAO said that it is regrettable that both partners will be unable to proceed with the development of the facility as both partners have contributed significant time and effort into the project.
Significance: Currently, CAO has stepped up efforts to evaluate several opportunities to lease or invest in oil storage facilities in the region. Separately, its 26 percent-owned facility in Korea is expected to be operational in January 2013.