Keppel Corporation will partner liquefied natural gas (LNG) shipping firm Golar LNG to develop a floating LNG facility to be located on the Mauritania and Senegal maritime border.
Keppel will partner Golar by subscribing for 30 per cent in Gimi MS Corporation. The remaining 70 per cent will be subscribed by Golar.
Gimi MS will build and operate the facility.
Keppel and Golar have previously partnered on the world's first floating LNG conversion project, which Keppel said has been a "successful proof of concept" as a quick and cost-efficient way to monetise stranded gas reserves.
Keppel chief executive officer Loh Chin Hua said last night that the Gimi investment can also be a seed asset for a possible infrastructure fund managed by Keppel Capital in the future.
He added: "We are pleased to further strengthen Keppel's relationship with Golar in capturing growing opportunities in the LNG space.
"This transaction reflects Keppel's confidence in the prospects of the floating LNG sector, and that this investment will provide attractive risk-adjusted returns...
"We are pleased that Keppel Offshore & Marine has been chosen to execute this important project, which will further strengthen our capabilities and track record in the conversion of floating LNG vessels."