Keppel secures order worth over US$400m to build two LNG containerships

An artist's impression of one of the LNG-fueled containerships that Keppel AmFELS will be building for Pasha Hawaii.
An artist's impression of one of the LNG-fueled containerships that Keppel AmFELS will be building for Pasha Hawaii.PHOTO: KEPPEL CORPORATION LIMITED

SINGAPORE - Keppel Corp said on Thursday (Aug 24) that its US unit Keppel AmFELS has secured a contract worth more than US$400 million (S$544 million) from Honolulu-based Pasha Hawaii for the construction of two liquefied natural gas (LNG) fueled containerships.

The dual fuel LNG vessels will be built to Keppel's proprietary design with delivery of the first vessel expected in the first quarter of 2020, and the second vessel in the third quarter of that year.

The new, 774-foot Jones Act vessels will be able to carry 2,525 TEUs (twenty-foot equivalent units), including a fully laden capacity of 500 45-foot containers, 400 refrigerated containers, and 300 40-foot dry containers, with a sailing speed of 23 knots.

The Jones Act requires vessels carrying goods between US ports to be built in the US. Keppel AmFELS, a wholly owned sibsidiary of Keppel Offshore & Marine Ltd, is located in Brownsville, Texas.

The containerships will be able to run completely on LNG fuel, dramatically reducing their environmental impact and increasing fuel efficiency, said Keppel. Energy savings will also be achieved with a state-of-the-art engine, an optimised hull form, and an underwater propulsion system with a high-efficiency rudder and propeller.

Keppel said the contract is not expected to have a material impact on its net tangible assets or earnings per share for the current financial year.