Singapore’s Keppel Shipyard has won a third contract worth USD684 million from Golar LNG to convert an LNG carrier into a floating LNG (FLNG) vessel.
The contract, involving the conversion of LNG carrier Gandria, is the exercising of the second of two options, after the first option, involving the conversion of LNG carrier Gimi, was exercised in December 2014. The two options came with the conversion of Hilli into an FLNG vessel in July 2014.
All three LNG carriers will be converted into FLNG vessels of the Golar Floating Liquefaction (GoFLNG) design.
Keppel Offshore & Marine (marine and technology) managing director Michael Chia on 22 July said, “GoFLNG facilities are set to reduce the cost and time required to monetise and deliver offshore gas to market. Now a year underway, the Hilli conversion project is progressing to plan. This third GoFLNG contract re-validates our delivery timeframes and price levels, further demonstrating the technical and commercial competitiveness, and lower implementation risks inherent in our solution.”
Keppel Shipyard has recently set up a new design and technology arm, Gas Technology Development (GTD), to research solutions for LNG markets.
Chia continued, “With enhanced capabilities and more innovative solutions, we look forward to supporting our valued customers like Golar in commercialising mid-scale LNG offshore sources in relatively benign met-ocean conditions in a more timely and cost-efficient manner.”
Full construction activities of the Gandria will only commence after Keppel Shipyard has received a notice to proceed, which is expected to be issued in 2016. The completed FLNG vessel is expected to be delivered about 31 months after receipt of such notice to proceed.