Keppel to perform the world’s first-of-its-type FLNG vessel conversion for Golar

July 3, 2014

Keppel Shipyard Ltd, a wholly-owned subsidiary of Keppel Offshore & Marine Ltd, has inked a contract with Golar Hilli Corporation (Golar), a subsidiary of Golar LNG Ltd, to perform the world's first-of-its-type conversion of an existing Moss LNG carrier, the Hilli, into a Floating Liquefaction Vessel (FLNGV), the company reported in a news release. The contract is worth approximately US$735 million.

In carrying out the FLNGV conversion, Keppel Shipyard shall be responsible for the provision of the design, detailed engineering and procurement of the marine systems and all of the conversion-related construction services. Keppel Shipyard's scope also includes engaging Black & Veatch to provide design, procurement and commissioning support services for the topsides and liquefaction process. Black & Veatch's PRICO® technology has been selected for the liquefaction process because of its long-established record in the marketplace.

This contract, which includes options for another two similar units, follows the completion of a year-long Front-End Engineering and Design (FEED) study by Keppel Shipyard and Black & Veatch. The FEED study was conducted as part of the terms of a term sheet agreement with Golar to convert up to three LNG carriers into FLNG vessels.

The conversion has been approved in principle by DNV in accordance with their classification rules and international standards. The FLNGV will take about 31 months to convert and is expected to be completed in the first quarter of 2017. Mr. Michael Chia, Managing Director (Marine & Technology), Keppel O&M, said, "The FEED study for Golar has come into fruition with the award of the world's first FLNG conversion project to Keppel Shipyard. We are excited to collaborate with trend-setting partners such as Golar and Black & Veatch. Keppel Shipyard had successfully delivered to Golar the world's first Floating Storage and Regasification Unit (FSRU) back in 2008, which was followed by two more similar units.

Source: Keppel, 2014.