Singapore-based offshore engineering specialist Seatrium has signed a memorandum of understanding (MoU) with Karpowership, the world’s largest operator of floating power plants, to explore the establishment of a joint venture for floating power generation and digital infrastructure in Singapore. The initiative could eventually be expanded to other Southeast Asian markets.
The agreement was signed in the presence of Dr Tan See Leng, Minister for Energy, Trade and Industry of Singapore, during Singapore International Energy Week 2026. This is a new chapter in a partnership that started in 2018, when Seatrium began to deliver floating storage and regasification unit (FSRU) conversions for Karpowership. To date, seven units have been delivered and contracts for an eighth and ninth vessel awarded in 2026.
A wider platform for floating energy and digital infrastructure
The proposed joint venture would combine expertise in infrastructure development, financing, engineering, construction and operations. The companies intend to develop an integrated platform that can offer a range of floating infrastructure solutions for evolving energy and digital needs.
The technologies under consideration include Powerships, floating data centers, turbine-powered and hybrid vessels, and floating nuclear power units. The scope is the ambition of the partners to explore different ways of generating power and deploying infrastructure.
“The collaboration will tap into the group’s offshore engineering heritage, systems integration capabilities and advanced facilities in Singapore with Karpowership’s expertise in floating power generation,” said Chris Ong, chief executive of Seatrium. The partnership could also help both firms capture opportunities across the wider energy infrastructure value chain, he added.
“Access to reliable electricity is becoming an increasingly important factor in industrial investment decisions,” said Orhan Remzi Karadeniz, chief executive of Karpowership. He described the proposed venture as a strategic next chapter in the companies’ longstanding relationship.
New opportunities from the increasing electricity needs of Singapore
This comes as Singapore braces for a surge in electricity demand. Currently, the city-state uses imported natural gas for about 95 per cent of its electricity production, so its energy system is heavily dependent on imported fuel.
The peak demand for electricity is expected to grow by up to 11.4 gigawatts by 2031. Several structural trends are expected to drive this growth, including the electrification of transport, expansion of semiconductor manufacturing capacity and continued development of data centers.
In this regard, floating power solutions could provide additional opportunities to support the country’s evolving energy infrastructure needs. With 45 Powerships already in operation around the world, Karpowership has a strong operational platform from which to develop further projects.
Partnership supported by current vessel projects
The latest agreement builds on the existing work Seatrium is carrying out for Karpowership. In October 2026, Seatrium won a contract to integrate Karpowership’s third-generation, hydrogen-ready Whale Class Powerships, reinforcing the companies’ partnership in the development of advanced floating power assets.
Both parties are looking to move forward with definitive joint venture agreements in the coming months. “Subject to the requisite approvals, the proposed venture is expected to provide a platform to pursue floating power generation and digital infrastructure opportunities in Singapore and potentially across Southeast Asia.”
