Keppel inks $933m contract to build liquefaction facility

Keppel's contract to convert this liquefied natural gas carrier (above) into a Golar floating liquefaction facility will be its third for shipowner Golar Gandria, a subsidiary of Golar LNG, one of the world's largest independent owners and operators
Keppel's contract to convert this liquefied natural gas carrier (above) into a Golar floating liquefaction facility will be its third for shipowner Golar Gandria, a subsidiary of Golar LNG, one of the world's largest independent owners and operators of LNG carriers.PHOTOS: KEPPEL CORPORATION
Keppel's contract to convert this liquefied natural gas carrier (above) into a Golar floating liquefaction facility will be its third for shipowner Golar Gandria, a subsidiary of Golar LNG, one of the world's largest independent owners and operators
An image of what the converted facility would look like.PHOTOS: KEPPEL CORPORATION

LNG carrier to be converted into Golar floating liquefaction vessel

A unit of Keppel Offshore & Marine (O&M) has inked a US$684 million (S$933 million) contract to convert a liquefied natural gas (LNG) carrier into a Golar floating liquefaction facility. The conversion project will be its third for shipowner Golar Gandria, a subsidiary of the London-based Golar LNG - one of the world's largest independent owners and operators of LNG carriers.

The craft will be designed and built by Keppel Shipyard with infrastructure firm Black & Veatch providing the support services and liquefaction process that converts natural gas into liquid form. Full construction work is expected to start next year after Keppel Shipyard has received a notice to proceed, said parent firm Keppel Corporation.

The converted vessel will be delivered about 31 months after this point. "Golar floating liquefaction (GoFLNG) facilities are set to reduce the cost and time required to monetise and deliver offshore gas to market," noted Mr Michael Chia, managing director of marine and technology at Keppel O&M.

"Now a year under way, the (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."

Mr Chia added that Keppel Shipyard has set up a new design and technology arm to focus on the LNG market.

The new contract is not expected to have any material impact on the net tangible assets and earnings per share of KepCorp for the current financial year.

KepCorp shares closed four cents down at $8.14.

A version of this article appeared in the print edition of The Straits Times on July 23, 2015, with the headline 'Keppel inks $933m contract to build liquefaction facility'. Print Edition | Subscribe