Shanghai: With news from Reuters that French energy giant Total and private equity firm Hellman & Friedman are looking to sell their 30% stakes in leading LNG membrane system Gaztransport & Technigaz (GTT), there is likely to be a bidding war from Asia with the Chinese facing off the Koreans.
GTT has around 70% of the market share for LNG ships, something that has seen Korean yards pay more than $1bn in royalties to the French firm over the years.
According to a SinoShip LNG White Paper last year (see link below) China will need up to 60 new liquefied natural gas carriers worth in the region of $12bn by 2020. Thus far, Chinese-built LNG ships have all been with the GTT containment systems. CSSC, the state-run group that controls yards from Shanghai to Guangzhou, would likely lead the bidding on the Chinese side.
GTT’s other shareholder, GDF Suez from France, with a 40% stake, has no intention of selling its holding. [27/06/13]
