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 October 28, 2015 - 7:23 AM EDT
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FSP LNG Containment System Construction to Begin at Early 2016

HONG KONG, Oct 28, 2015 - (ACN Newswire) - Honghua Group Ltd ("Honghua" or the "Group") (Stock Code: 196.HK), a leading global land drilling rig manufacturer, is pleased to announce that the joint venture group FSP LNG BV is taking the FSP LNG Flat Panel Semi-membrane Prismatic Type B containment system through General Design Approval (GDA) with the American Bureau of Shipping in Houston, and is projecting that construction of the first tank will begin early next year.

Formed earlier this year to take the FSP LNG containment system through the general approval process, the group comprises Braemar Engineering, Honghua Group, EnTX and Jamestown Marine Metals.

In a joint statement, Mr. Zhang Mi, Chairman of Honghua, and Geoff Green, Managing Director of Braemar Engineering, said that "substantial progress has been made to date, and this is expected to continue going forward". In addition they stated that GDA and Tank Specific Approval was moving forward in parallel, and that approval, construction and test-completion of the first tank was projected for the end of the first quarter of 2016.

Chairman Zhang Mi and Geoff Green added that they were "delighted with the progress made to date and wanted to take this opportunity to thank all of those in the joint venture for their ongoing hard work". Both gentlemen also wanted to extend their thanks to ABS and General Dynamics NASSCO for their unstinting support.

The FSP system - a new flat-panel, semi-membrane, prismatic-shaped LNG tank-containment system Type B - uses new flat plate technology to overcome the issues associated with partial filling and sloshing. At the cutting edge of development in this field, the system employs a unique high tech process taken from the aerospace industry, the 'friction stir welding' technique, offering optimum integral strength.

FSP can be used in a wide range of applications: LNG liquefaction plants, Floating Production and Storage (FPSO); Floating Storage Regasification Units (FSRU), LNG transportation and LNG marine fuel tanks. It can even be used as offshore storage.

The new Type B containment system has been designed to be constructed, outfitted, insulated and tested off hull and lifted complete onto the platform. The use of on shore construction facilities ensures the highest standards of quality care and repeatability.

Mr. Zhang Mi, Chairman of Honghua commented, "Natural gas, as the environment-friendly and clean energy, is under rapid development. Meanwhile, China is promoting the development of natural gas through implementing several policies. It is expected that the natural gas consumption in China will continue to increase rapidly, which leads to the increasing demand for LNG storage and transportation equipment, such as LNG liquefaction plants, transoceanic LNG ships and LNG vessels used in China's domestic lines and inland rivers, as well as LNG fueled ships. Compared with the existing technology in the market, the new advanced FSP LNG technology that Honghua participated with global leaders this time has made significant improvements. It is more anti-sloshing, possesses high effective capacity ratio and can be partial filled during transportation. It could also be constructed independently and results in high - economy and cost advantages.

Apart from the breakthrough Honghua made in the turnkey service of overseas oilfield services business recently and its continued development in offshore engineering business, Honghua expands its footprint in LNG industry chain by taking this new advanced FSP LNG containment system as the entry point. In the future, LNG industry will become the focus of strategic development of Honghua. By virtue of the Group's excellent in-house R&D capability and advanced technique as well as the competitive edges of the giant hoisting equipment 'Honghai Crane', Honghua will participate in the core valued sub-divisions of LNG industry, which could also leverage the advantages in the pre-investment in Offshore manufacturing base of the Group and make synergy effects, thus to improve the diversified business layout of the Group."

About Honghua Group Limited (Stock Code: 196.HK)
With a staff of more than 7,000 and headquartered in Chengdu, China, Honghua Group is a listed company (HK0196) and is the largest manufacturer and exporter of land rigs in the world. It is also known in the industry for its offshore equipment and well drilling services.

With a culture of innovation, the Group takes pride in the quality of its R&D teams both at home and abroad. In addition to its reputation as a provider of cost-effective land rigs and offshore products, it has revolutionised the industry by developing and building a 22,000-ton gantry crane for hassle-free handling of gigantic vessels, jack-ups, semi-subs etc.

Besides two production bases of more than 350 acres in China for land rigs and offshore products, the Group has a twelve locations around the world, offering easy access to professional services for customers worldwide.

Braemar Engineering
Braemar Engineering (formerly known as Wavespec) is a highly regarded, industry leading engineering company providing specialist services and consultancy for marine, offshore and land based projects in the Oil and Gas Industry. Having earned a reputation for innovation and excellence, it works with clients and third parties to provide them with the expertise they need to deliver quality results.

EnTX Tekmar, LLC
EnTX Tekmar, LLC is a unit of the EnTX Group based in Denver, Colorado. EnTX Tekmar was co-founded by Dr. Liu Shumin, the founder of the EnTX Group, Mr. Albert Pope and Mr. Charles Wassell. EnTX Group activities include investments in oil and gas properties, midstream assets, transportation and logistics.

Jamestown Metal Marine Sales, Inc.
Jamestown Metal Marine Sales, Inc., headquartered in Boca Raton, Florida, is a leading EPCI contractor in the marine and offshore construction industries with over 40 years of expertise. Jamestown provides a full range of project management, quality management, engineering and fabrication services in turnkey marine construction, which it performs for commercial and government entities throughout the USA and in international markets.

Source: Honghua Group Limited

Copyright 2015 ACN Newswire . All rights reserved.

Source: ACN Newswire (October 28, 2015 - 7:23 AM EDT)

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