Singapore’s Seatrium Offloads Texas AmFELS Yard to Karpowership for $50 Million

Singapore-based Seatrium Limited has announced the divestment of its AmFELS Yard in Brownsville, Texas, to Karpower Valley LLC for S$65 million (USD 50.6 million), marking a significant realignment of its U.S. operations while strengthening ties with floating power provider Karpowership.

The transaction, executed through Seatrium’s subsidiary Seatrium AmFELS, Inc., represents an accretive divestment that will enable Seatrium to enhance capital and operational efficiencies while unlocking value from surplus facilities.

Karpowership is the world’s largest owner and operator of the floating power plant technology, known as Powerships.

Under the terms of the agreement, S$50 million of the consideration will be deferred and paid one year after closing. The book value of the divested assets, sold on an “as is, where is” basis, stood at approximately S$39 million as of June 30, 2025.

“We have a strong and longstanding relationship with Karpowership, and are pleased to entrust the yard to a partner with whom we will continue to deepen our collaboration,” said Seatrium CEO Chris Ong.

Despite the yard divestment, Ong affirmed that “the U.S. market remains important to us. We will continue to leverage our global footprint and integrated One Seatrium Delivery Model to deliver world-class solutions to our U.S. based and global customers in the offshore and energy sectors.”

Following the transaction, Seatrium will transition its strategic presence in the U.S. to focus on engineering innovation and technology capabilities through its technology centers and offices in Houston, Texas, and a service center in Vicksburg, Mississippi.

The sale comes just over a month after the two companies strengthened their partnership with the naming of Karadeniz LNGTS Americas in August at Seatrium’s shipyard in Singapore. This vessel represents the fifth member of Karpowership’s LNGTS (LNG Terminal Ship) fleet, which can be paired with the company’s floating power plants known as Powerships.

The relationship between the two companies extends beyond the yard sale, with the firms signing a Letter of Intent in August for Seatrium to convert three high-capacity LNGTS and Karpowership’s next generation of Powerships, which feature modular systems adaptable to project needs and the ability to integrate advanced technologies like Carbon Capture, Utilization, and Storage (CCUS) systems.

Karpowership has established itself as a significant player in the global energy market, currently representing 1% of global installed Gas-to-Power capacity with ambitions to double that to 2% over the next decade. The company operates 50 Powerships with an installed capacity of 10,000 MW and 11 LNGTS units across 20 countries.

The completion of the AmFELS yard divestment remains subject to customary closing conditions, including the transfer of the lease to Karpowership’s related entity by the Port of Brownsville. Seatrium has committed to completing all ongoing projects at the facility by the end of 2025 to ensure a smooth transition.

This strategic divestment highlights the ongoing consolidation and realignment in the maritime and offshore energy sectors as companies adjust to evolving market conditions and emerging opportunities in cleaner energy solutions.

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