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Golar LNG executes agreements for FLNG vessel

LNG Industry,

Following a successful follow-on equity offering, Golar LNG Limited has executed a number of key agreements for the conversion of the 125,000 m3 LNG carrier Hilli to a floating liquefaction vessel (FLNGV). The conversion has been approved in principle by DNV.

PRICO technology

The primary contract for the FLNGV was signed with Singapore’s Keppel Shipyard Limited. Keppel has simultaneously entered into a sub-contract with Black & Veatch, who will provide its licensed PRICO® technology, perform detailed engineering and process design, specify and procure topside equipment, and provide commissioning support for the FLNGV topsides and liquefaction process.

Golar selected Black & Veatch's technology because of its long-established record of reliable performance. The two companies worked together in early 2012 on the concept and the front end design from the FLNG vessel.

Industry leadership

“Golar, Keppel Shipyard and Black & Veatch form a strong combination of industry leadership for this complex offshore conversion project,” said Michael Chia, Managing Director, Marine & Technology, Keppel Offshore & Marine Ltd. “The result will be an innovative solution that brings a faster and more cost effective alternative to address the competitive global demand for energy.“

The FLNGV conversion contract is a key step towards full implementation of Golar's floating LNG production strategy. The company is excited to be working with such high calibre project partners as Keppel and Black & Veatch. Keppel's world-leading position in conversion of floating infrastructure coupled with Black & Veatch's deep LNG experience creates a strong project team with a solid record of delivering complicated projects on budget and on time.

‘Decade of gas’

“This is the decade of gas and the LNG sector, in particular, has fundamentally changed post-Fukushima,” said Hoe Wai Cheong, Executive Vice President and Executive Director of EPC Projects for Black & Veatch. “This, along with the increasing commercialization of unconventional gas resources in North America, creates a new energy frontier.”

The conversion is scheduled to be completed in February 2017. Golar has also secured firm options for conversion of two additional vessels, which can be delivered from the yard in Q3 2017 and Q1 2018.

FLNG coonversion timeline

The conversion vessel Hilli will be delivered to Keppel shipyard in Singapore within 3 to 4 months to initiate renewal of key systems onboard the vessel while the topsides are manufactured. The FLNG production equipment will be mounted on two new sponsons, which will be connected to the vessel.

The company expects the FLNGV conversion to be completed and delivered in approximately 31 months. The conversion is faster than a new build project and will therefore result in LNG being brought to market sooner.

“LNG has the potential to deliver greater energy security for generations to come. Innovators like Golar and Keppel are at the forefront of anticipating these changes by developing faster-to-market and mobile FLNG solutions,” added Cheong.

Edited from various sources by Katie Woodward

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