Keppel Offshore & Marine Ltd (Keppel O&M) subsidiary Keppel Shipyard is in the process of finalizing contracts with a subsidiary of Golar LNG to convert a second Moss LNG carrier, the GIMI, into a floating liquefaction vessel (FLNGV).
The contract follows a contract with Golar Hilli, announced in July 2014, for Keppel Shipyard to perform the world's first-of-its-type conversion of a Moss LNG carrier, the HILLI, into an FLNGV. The initial contract included options for another two similar units.
Keppel has also agreed to acquire a 10% interest in Golar Hilli, the owner of the Moss LNG carrier HILLI, through Keppel's subsidiary KSI Production Pte.
The work scope for Keppel Shipyard in converting the GIMI is expected to be similar to that for the HILLI. Keppel Shipyard 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's scope will include engaging Black & Veatch to provide design, procurement and commissioning support services for the topsides and liquefaction process. Black & Veatch's PRICO technology is expected to be selected for the liquefaction process.
Michael Chia, Managing Director (Marine & Technology), Keppel O&M, said: "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 liquefied natural gas (LNG) to market, ahead of other competing solutions."
A further announcement will be made upon the execution of a firm contract, which is expected by October 2014, for the conversion of the GIMI. Upon execution of the contract, full construction activities will only start when Keppel Shipyard receives a notice to proceed which is expected to be given on or after 1 January 2015 but no later than November 2015.
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