Philly Shipyard, Inc., the sole operating subsidiary of Philly Shipyard ASA (Oslo: PHLY), reports that Jeffrey Theisen will rejoin the company as Chief Financial Officer, effective September 8, 2020. Theisen fills the
AUGUST 14, 2016 — Crowley Maritime Corporation will hold a ceremony at Philly Shipyard, Inc. this Tuesday to christen its latest Jones Act product tanker, MT West Virginia. Crowley took delivery of
The LNG-Ready Level 1 approval was issued, along with an approval in principle for the first vessel in a series built by Aker Philadelphia Shipyard and operated by Crowley Maritime Corporation, the recently delivered Ohio.
By achieving compliance with the ABS Guide for LNG Fuel Ready Vessels, Crowley has the option to convert the product tankers in the series to LNG fueled propulsion at a later date having already been granted a conceptual review.
“ABS has played a fundamental role in supporting the ambitions of the maritime industry as it moves to embrace the opportunity of LNG as fuel,” says ABS Chairman, President and CEO Christopher J. Wiernicki. “This milestone builds upon our work to provide owners with the guidance and support they need to move ahead with shipbuilding projects that allow them the flexibility to respond to changes over the lifetime of their vessels.”
ABS published the Guide for LNG Fuel Ready Vessels in 2014. The LNG-Ready endorsements allow shipowners and yards the flexibility to limit their initial investment while planning for the future conversion to dual fuel or gas-powered combustion engines. A well-thought-out plan can prepare shipowners to face ever-increasing stricter environmental regulations as well as help save time and money by considering basic gas-fueled ship requirements during the preliminary design and minimizing the potential changes during the future conversion.
“Crowley is proud to be the first company to actually receive this designation from ABS,” says Rob Grune, SVP and general manager petroleum services for Crowley. “As our business continues to shape itself to better meet the requirements of our customers, these vessels that stand ready and able to operate on a cleaner, alternative fuel source are our way of anticipating future demands.”
“Working with ABS and Crowley to build the first LNG-Ready product tanker has been a valuable process and has allowed the shipyard to deliver a vessel with the flexibility to evolve in the future” says Scott Clapham, SVP of Aker Philadelphia Shipyard.
Crowley says the delivery is momentous not only for Crowley, but also for the industry because it is the first time a product tanker has been constructed with consideration for the future use of LNG as fuel. The remaining three ships in the series have planned deliveries through 2016.
The ships are based on a proven Hyundai Mipo Dockyards (HMD) design which incorporates numerous fuel efficiency features, flexible cargo capability, and meets the latest regulatory requirements. The vessel is 600 feet long and is capable of carrying crude oil or refined petroleum products.
Crowley’s Seattle-based, naval architecture and marine engineering subsidiary Jensen Maritime is providing construction management services for the product tankers. Jensen now has an on-site office and personnel at the Philadelphia shipyard to ensure strong working relationships with shipyard staff and a seamless construction and delivery program.
“We are excited to offer our customers cutting-edge technology available in these new tankers, which not only embraces operational excellence and top safety, but also offers the potential to be powered by environmentally friendly LNG in the future,” said Crowley’s Rob Grune, senior vice president and general manager, petroleum and chemical transportation. “Adding these new Jones Act tankers to our fleet allows us to continue providing our customers with diverse and modern equipment to transport their petroleum and chemical products in a safe and reliable manner.”
“We are proud to have Crowley as a repeat customer at the shipyard and to deliver another quality tanker to them. This vessel continues our strong history of building ships here in Philadelphia,” said Aker Philadelphia President and CEO Steinar Nerbovik.
This follows last month’s news that Kinder Morgan, Inc. (NYSE: KMI) had agreed the four Jones Act tankers building for the shipyard’s wholly-owned U.S. subsidiary, Philly Tankers LLC.
Marathon’s buy-out of APSI’s interest in the Crowley joint venture with respect to each vessel will occur on its delivery from the shipyard. Deliveries of all four vessels are expected to occur from Q3 2015 to Q3 2016. APSI expects to recognize a pre-tax gain of approximately $10 million per vessel from the transaction.
APSI will make an investment in the vessels during their construction, but will no longer maintain the previously planned long-term investment in the vessels post-delivery, which was expected to be approximately $110 million in the aggregate.
“This transaction is an important part of AKPS’s plan to divest its shipping investments and realize the value created for shareholders,” said Kristian Rokke, Chairman of AKPS. “We are proud of what we have accomplished together with Crowley under the joint-venture and look forward to serving both Crowley and Marathon Petroleum as shipbuilders into the future.”
All four of the vessels subject to the transaction are under construction. APSI has also begun construction of the first two of four additional 50,000 dwt tankers for a subsidiary of Kinder Morgan, Inc., which are planned to be delivered between November 2016 and November 2017.
The shipyard also has contracts for two 3,600 TEU containerships for Matson Navigation Company, Inc., which are planned to be delivered in 2018.
On July 16, 2015, the company announced that it intends to change its name to Philly Shipyard by the end of the year, pending shareholder approval.
