Q-LNG, VTHM Execute LOI for Another LNG Bunkering Vessel

Quality Liquefied Natural Gas Transport, LLC (“Q-LNG”) announced its further commitment to support the cruise line industry and its liquefied natural gas (“LNG”) marine fueling needs by executing a letter of intent (“LOI”) with VT Halter Marine, Inc. (“VT Halter”) to construct an 8,000m3 LNG Bunkering Vessel on speculation.

CEO, Shane Guidry, commented, “With the past and recent announcements by major cruise lines to build and deliver LNG powered cruise ships to the U.S. market, Q-LNG is committed to deliver the safest, most cost effective solution to the cruise line industry.”

This contract represents a continuation of Q-LNG’s commitment to developing LNG fueling infrastructure in North America.  Q-LNG and its minority partner, Harvey Gulf International Marine, will own and operate these assets to provide marine transportation of LNG, a critical component of U.S. LNG infrastructure, to various ports in Florida and the Caribbean.  Guidry added, “As you’ve seen earlier this week, Harvey Gulf, my partner in Q-LNG, announced five years of safe operations without a recordable incident. The operations teams at Harvey Gulf and Q-LNG, stand ready to deliver the same level of safety performance to the entire cruise line industry.”

Q-LNG is currently contracted with VT Halter for the construction of America’s first offshore LNG Articulated Tug and Barge (“ATB”). This ATB will be constructed to meet the requirements of US Flag, ABS Class, and the International Gas Carrier Code and is designed to carry 4,000 cubic meters of LNG, with barge having dimensions of 324’ x 64’ x 32.6’ and the tug having dimensions of 128’ x 42’ x 21’.

Mr. Guidry further commented, “We have entered into this letter of intent to advance the project through design verification, finalize our construction and pricing proposal, and arrange financing.  Having the full commitment of VT Halter, we are confident that the construction of the second vessel for Q-LNG, will be equally successful.”   Mr. Guidry continued, “The new project will mirror closely the current vessel under construction, by utilizing a significant amount of the detail design and engineering.  The new 8,000 cubic meter design captures all lessons and efficiencies learned from the first ATB.  Thus, Q-LNG will be able to deliver the follow-on design in a shorter period of time at a highly competitive price.  By working with current equipment suppliers, we are able to leverage cost saving efficiencies while ensuring a positive outcome for the delivery and reliability during operations.”