Sembcorp Marine said its unit signed a letter of intent with the U.S.-based SeaOne for the construction of compressed gas liquid (CGL) carriers.
The letter of intent was signed by Sembcorp Marine's unit Sembcorp Marine Specialised Shipbuilding Pte. for the design and construction of at least two CGL carriers, the company said in a statement on Monday.
The project will develop an environmentally-friendly, lowest cost, and safe means of transporting gas and gas liquids together as a single cargo.
Sembcorp Marine will design the neo-panamax CGL carriers based on SeaOne's single gas and liquids cargo delivery requirements.
The design will incorporate proprietary ship component ideas from Sembcorp Marine subsidiary LMG Marin, a leading naval architect and ship design house in Europe, the company said.
The signing of the letter of intent will unlikely have any material impact on the net tangible assets and earnings per share of Sembcorp Marine for the financial year ending December 31 , the company said.
Shares in Sembcorp Marine gained 2.8 percent to S$1.67 on the Singapore Exchange. The stock has climbed 21 percent so far this year.