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Keppel finalises FLNGV conversion contracts

LNG Industry,


Keppel Shipyard Ltd said it was finalising contracts with Golar Gimi Ltd, a subsidiary of Golar LNG, to perform the conversion of a second Moss LNG carrier, the GIMI, into a floating liquefaction vessel (FLNGV).

Earlier this year, Keppel Shipyard was awarded a firm contract by Golar Hilli Corp. (Golar Hilli) to convert the Moss LNG carrier HILLI into an FLNGV and the contract included options for another two similar units. The conversion contract for the GIMI represents the first of these two options.

Similar approach

Keppel Shipyard said that the conversion of the GIMI would take a similar approach to that of the HILLI. The company will be responsible for the provision of the design, detailed engineering and procurement of the marine systems and all of the conversion-related construction services. It is also expected that Keppel Shipyard will contract Black & Veatch to provide design, procurement and commissioning support services for the topsides and liquefaction process. As with the HILLI, Black & Veatch's PRICO® technology is expected to be selected for the liquefaction process.

Bringing small and mid-scale solutions to market

Mr Michael Chia, Managing Director (Marine & Technology), Keppel O&M, said: "We are happy that Golar LNG is looking into their second FLNGV conversion, and is finalising discussions with Keppel Shipyard to perform this second conversion. We look forward to the opportunity to collaborate once again with Black & Veatch, our trusted partner for the first conversion, on this potential second project. We are confident that together with Black & Veatch, we will be able to perform this second conversion to the high standards expected of us.

"This advanced discussion for the conversion of the GIMI, which follows just two months after the first firm contract with Golar Hilli, is testament to the industry's positive reception to FLNGV conversion solutions and its potential to bring small and mid-scale LNG to market, ahead of other competing solutions."It is anticipated that a firm deal will be struck by October 2014. Once the contract has been executed, construction will begin only when Keppel Shipyard receives notice. This will likely be in the period from January to November 2015.

SPA

This announcement comes as Golar LNG subsidiary Golar GHK Lessons Ltd announced a sale and purchase agreement (SPA) with Keppel subsidiary KSI Production Pte Ltd for a 10% interest in Hilli.


Adapted from press release by Ted Monroe

Read the article online at: https://www.lngindustry.com/floating-lng/05092014/keppel-finalises-flngv-conversion-contracts-with-golar-lng-1349/


 

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