Shell Trading, Harvey Gulf ink LNG Transport Contract

 

Q-LNG will own and operate assets providing marine transportation of liquefied natural gas (“LNG”), a critical component of U.S. LNG infrastructure, commencing with a long-term contract with Shell Trading (U.S.) Company (“Shell”) to deliver LNG as a fuel source to various ports in Florida and the Caribbean. Mr. Guidry commented, “I’m very appreciative that Shell has the confidence in me and my team to service their LNG transport needs. Everyone is aware the eastern ports of Florida are very busy with pleasure-craft, and Q-LNG will be focused and dedicated to deliver extremely safe transit to all the ports we will service.”

 

Mr. Guidry added, “While the downturn in the Oil & Gas market has hurt all vessel operators, our continued partnership with Shell displays the confidence entrusted in our team, which is extremely appreciated and very rewarding. We will not let Shell or the end users down in any way. We will work diligently 24 hours a day, 7 days a week to ensure Q-LNG delivers extremely safe and reliable service. In July 2017, under Shane Guidry’s leadership, Harvey Gulf reached four years while working over 12 million man hours without a lost time accident. The strong safety culture we’ve developed at Harvey Gulf will be integrated into Q-LNG, as well as a continued commitment to build upon the “SAFETY ABOVE ALL” foundation our team has established.”

 

Q-LNG has contracted with VT Halter Marine, Inc. (“VT Halter”) for the construction of America’s first offshore LNG Articulated Tug and Barge (“ATB”). The ATB will be constructed to meet the requirements of the International Gas Carrier (“IGC”) code and is designed to carry 4,000 cubic meters of LNG, with the barge having dimensions of 324’ x 64’ x 32.6’ and the tug having dimensions of 128’ x 42’ x 21’. The project will rely heavily on the collaboration between VT Halter and Wärtsilä, who will be delivering a large scope of equipment to the project. Wärtsilä’s deliverables for the barge include all of the cargo handling, cargo control, and cargo containment system as well as the PMS and automation onboard. The supply for the tug includes all of the bridge navigation, communications, and dynamic positioning equipment as well as thruster, PMS and automation. Mr. Guidry commented, “We are pleased to continue our long relationship with Wärtsilä by partnering once again on another first for the North American LNG supply chain.”

 

At a time when companies are stacking boats and scrapping new builds, our CEO and partner Shane Guidry is contracting and building,” commented Harvey Gulf Board member W. Steve Orlando. “We are just so pleased to be able to have a CEO and partner running Harvey Gulf like Mr. Guidry does.  He truly comprehends the clients’ need for Safety, Service and Operational excellence. Mr. Guidry and his team have delivered consistent margins of over 55% since the downturn started in 2014, further increasing these margins in excess of 60% throughout 2016 and 2017.”  Mr. Orlando added, “In this market environment it’s amazing what Mr. Guidry and his team have done, and I truly believe they will deliver the safest, most reliable service possible. His cost management is like nothing I’ve ever seen. Compared to our public peers, it’s completely night and day. SG&A and Operating Expenses are half, and Harvey Gulf’s EBITDA is more than all the U.S. public peers combined together.”