SINGAPORE - Keppel Offshore & Marine (Keppel O&M) customer Stolt-Nielsen Gas has exercised its options for Keppel to build it two additional small-scale liquefied natural gas (LNG) carriers worth a total of around $105 million, Keppel said on Sunday (Oct 7).

Keppel had secured options to build three LNG carrier vessels for Stolt-Nielsen Gas last year, as part of a contract signed in May 2017 between Keppel Singmarine and Stolt-Nielsen Gas to build two LNG carriers. The first option lapsed in November 2017, while the second and third options have now been exercised by Stolt-Nielsen Gas.

The two new contracts will be completed in the fourth quarter of 2020 and first quarter of 2021 respectively.

Similar to the two units contracted last year, the two new carriers will each have a capacity of 7,500 cubic metres, and come equipped with engines that can run on both diesel and LNG. They will also have a class notation for bunkering which enables the provision of LNG bunkering services if required.

Abu Bakar, managing director (gas & specialised vessels) of Keppel O&M, said: "These LNG carriers will be the fourth and fifth vessels capable of LNG bunkering as well as the 11th and 12th LNG-powered vessels that Keppel will be building. We look forward to furthering this track record as the industry increasingly adopts LNG as a marine fuel."

Keppel noted that the marine industry is increasingly adopting LNG as a marine fuel, as global emissions standards are tightened.

"Economical and quick to market, small-scale LNG projects are a means to reaching end users located in remote areas not served by pipelines," Keppel said.

Keppel shares fell 2.2 per cent to close at $7.10 last Friday.