Lockheed Martin Sees Growing LNG Tank Demand in Marine Market

Thursday April 17, 2014

With the completion of its first cryogenic tank for liquefied natural gas (LNG) bunkers, Lockheed Martin [NYSE:LMT] says it expects demand for LNG tanks for marine and other transportation markets to grow.

"We are constantly looking for ways to innovate and leverage proven advanced technologies in different industries and our first LNG tank is a great example of this synergy," said Vincent Sica, vice president at Lockheed Martin Information Systems & Global Solutions.

The U.S.-based aerospace and defense company completed construction on the 250,000-pound tank for use in a system that Wärtsilä Corporation (Wärtsilä) is building for a Harvey Gulf International Marine (Harvey Gulf) LNG-powered offshore support vessel (OSV).

The ship is now under construction at Gulf Coast Shipyard group in the U.S. state of Mississippi.

"We are very pleased with the relationship we are building with Lockheed Martin during this process," said Harvey Gulf Chairman and CEO Shane Guidry.

"Our commitment to help our country become energy independent is clear."

The tank is the first in a series that Lockheed Martin is building for marine and land-based storage LNG applications, using technology and experience from the manufacturing of external tanks for space shuttles.

Guidry said in February that the company, which is building the first LNG bunkering station in the U.S., as well as ordering a number of vessels using the fuel, sees LNG bunkers as "the way of the future."