Wison Offshore & Marine ("Wison") today announced it has signed a Memorandum of Understanding ("MOU") on strategic cooperation with Shanghai Electric Power Generation Group ("Shanghai Electric"), the company said in its press release.
Two parties will join their efforts in medium to large-scale floating LNG power generation barge, with regards to its product development, global marketing and technical services. Such collaboration aims to promote the commercialization of this new electrification solution while opening up a series of further cooperation in power sector between Wison and Shanghai Electric.
The strategic tie-up builds on Wison's unique experience and integration capability in floating LNG facilities combined with Shanghai Electric's leading edge in core gas power equipment and EPC services for international power projects. Based on the Floating LNG Storage Regasification and Power Generation("FSRP") solution developed by Wison earlier on, both parties will join forces to build up capabilities throughout FSRP project life cycle from product development, marketing, project financing, facility construction, to operation and maintenance, with a view to accelerate commercialization of this innovative solution in global market. The parties will focus on developing medium large-scale FSRP, and study the application of Shanghai Electric's world class gas turbine technology and integrated generation set solution to the FSRPs, such that the product’s economy and reliability can be further enhanced. While Wison already received Approval in Principle for its 50MW FSRP from Bureau Veritas in July, today's strategic move signifies Wison has taken a solid step towards medium large scale FSRP development.
Wison is committed to providing cost-effective LNG infrastructure solutions for natural gas industry and end-users. As the EPCIC contractor for world's first Floating LNG Storage and Re-gasification("FSRU") barge, Wison eyes FSRP as a critical extension of its LNG product portfolio, that is advantageous in project capital cost and lead time to comparable on-shore solutions. Mr. CUI Ying, CEO of Wison Offshore & Marine said, "Wison is greatly honored to join hands with Shanghai Electric, a worldwide market leader to develop FSRP products. It's no doubt the complimentary strengths and resources of the two companies can facilitate our path forward in commercializing floating LNG power, which in turn will solidify a leading position in this emerging market."
Shanghai Electric is highly positioned in technological R&D, equipment supply, investment and management of power infrastructure with impressive track record. The company's existing order backlog in power station of over RMB70 billion ranks top amongst the peers internationally. Its high profile gas turbine portfolio is further strengthened by the long-term cooperation with Italian Ansaldo Energia, a well-known heavy duty gas turbine manufacturer. "Cooperation with Wison on floating LNG power station coincides with our effort to accelerate developing gas turbine business. Such innovative concept is a new attempt for marine application of heavy duty gas turbines. I very much look forward to the "win-win" cooperation on international markets." Mr. CAO Min, President of Shanghai Electric Power Generation Group commented on the collaboration with Wison.
Both parties have a buoyant view over power demands fueled by global economy which is largely driven by growth in developing countries, and clean power in particular has promising long-term prospects. Alongside gas-fired power, Wison and Shanghai Electric will also launch discussions on coordinating efforts to develop deep water wind power technologies, as well as to seek investment and operational opportunities in power sector, in the hope of making high value-added contribution to the energy security and development in regions with thirst for affordable clean power.