Wärtsilä and ENGIE to Cooperate on Small Scale LNG Market Development

Wärtsilä will cooperate with ENGIE on solutions and services within the small scale LNG business sector, including LNG for ships.

Wärtsilä Corporation (Wärtsilä) Monday announced that it has signed a Memorandum of Understanding (MoU) with France's ENGIE for the development of solutions and services within the small scale liquefied natural gas (LNG) business sector, including LNG bunkers.

The cooperation is said to specifically cover four areas including LNG for ships, LNG distribution in islands and remote areas, LNG to Power solutions, and small scale LNG and bio liquefaction.

"ENGIE has taken key positions in the small scale LNG market. This agreement with Wärtsilä will help develop innovative small scale LNG solutions with quicker implementation time and enhanced competitiveness," said Jean-Marc Leroy, ENGIE's Managing Director Gas Chain.

Under the MoU, the two companies will offer their experience and technical expertise, including Wärtsilä's Engineering, Procurement and Construction (EPC) capabilities, and ENGIE's experience in natural gas distribution and commercialisation, as well as operation and maintenance services.

"We are excited to be working with ENGIE and developing together more sustainable energy solutions for our customers and society as a whole. This cooperation is an important step towards Wärtsilä's goal of growing our presence in the small to medium scale LNG terminal business," said Alexandre Eykerman, Vice President for LNG Solutions at Wärtsilä.

The MoU is said to present a "strong incentive" for the co-development of technical solutions to enable the two companies to expand their small scale LNG businesses, and marks an important step for both Wärtsilä and ENGIE toward their aim for a low-carbon economy by increasing focus on LNG-solutions.

As Ship & Bunker reported last week, Wärtsilä says its offering of dual-fuel marine engines and exhaust gas cleaning (EGC) systems means that the company is "well positioned" to help shipowners ensure compliance with a 0.5 percent global sulfur cap on marine fuel to be implemented from 2020.