Page 4: of Maritime Reporter Magazine (September 15, 1977)

Estimated Foreign Cost

Of Two LNG Carriers $115.5 Million Each

The Maritime Subsidy Board (MSB) has issued a final opinion and order in Docket No. A-117, concerning determination of the estimated foreign construction cost of two 125,000-cubic-meter liquefied natural gas (LNG) vessels. The determination was made in connection with the ap- plication by LACHMAR, Inc. for construction-differential subsidy (CDS) to aid in the construction of two such vessels.

The MSB made the following determinations, among others: (1) That Western Europe is the fair and representative shipbuild- ing center on which to base the estimated foreign construction cost of the vessels; and (2) That the estimated final foreign price for the construction in Western

Europe of the two vessels would be $115.5 million each.

The determinations were made pursuant to Section 502 (b) of the

Merchant Marine Act of 1936, as amended, which requires that the fair and reasonable estimated for- eign cost be determined by find- ing: the type of vessel proposed for construction with CDS assist- ance; and the fair and represent- ative foreign shipbuilding center for the presumed construction under similar plans and specifi- cations (excluding national de- fense features).

On July 23, 1976, pursuant to the direction of the MSB, a notice was published in the Federal Reg- ister of the intent to recompute the estimated foreign cost of the vessels. Comments from inter- ested parties were invited. Data were received from Morgas, Inc. on behalf of LACHMAR.

The two LNG vessels are to be constructed for LACHMAR at a negotiated estimated final price of $155 million each by General

Dynamics Corporation's Quincy,

Mass., shipyard. LACHMAR is a partnership consisting of Morgas,

Inc., Pantheron, Inc., and Pelmar,

Inc. They are subsidiaries of

Moore-McCormack Bulk Trans- port, Inc., General Dynamics Cor- poration, and Panhandle Eastern

Pipe Line Company, respectively.

Upon completion in December 1979, and March 1980, the ships will be operated by Gastrans, Inc., which is also a subsidiary of

Moore-McCormack Bulk Trans- port. The ships will be used to carry LNG from Algeria to Lake

Charles, La.

Each of the two vessels will be 936 feet long, 143 feet abeam, and have a draft of 36 feet.

Capt. Edward W. Knutsen

Capt. Edward W. Knutsen has been elected a vice president of

Marine Transport Lines (MTL), 60 Broad Street, New York, N.Y. 10004, with primary responsibil- ity in the area of administration.

Fred S. Sherman, chairman of the board of MTL, who announced the election, noted that Captain

Knutsen brings an extensive mar- itime background to his new as- signment. Prior to joining MTL, a subsidiary of GATX Corpora- tion, Chicago, 111., Captain Knuts- en sailed as a master of American merchant vessels, and served ashore with steamship industry and as Assistant Superintendent and Commandant of Midshipmen at the United States Merchant

Marine Academy.

Captain Knutsen holds a B.S. degree from the U.S. Merchant

Marine Academy, and a Master of Business Administration de- gree from Pace University. He is active in the U.S. Naval Reserve, and the Council of American Mas- ter Mariners.

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Capt. Edward Knutsen

Named Vice President

Marine Transport Lines

JHKW*~ 94 14 Maritime Reporter/Engineering News