Keppel Shipyard Ltd. is finalising contracts with Golar Gimi Ltd. to perform the conversion of a second Moss LNG carrier, the GIMI, into a Floating Liquefaction Vessel (FLNGV).

Keppel Shipyard, a wholly-owned subsidiary of Keppel Offshore & Marine Ltd., was in July awarded a firm contract by Golar Hilli Corp, a subsidiary of Golar LNG Ltd., to perform the world’s first-of-its-type conversion of a Moss LNG carrier, the HILLI, into an FLNGV unit. That contract included options for another two similar units.

The forthcoming conversion award of the GIMI is the exercising of the first of those two options.

The workscope for Keppel in converting the GIMI is expected to be similar to that for the HILLI. Keppel 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 established PRICO technology is expected to be selected for the liquefaction process, said Keppel.

Michael Chia, Managing Director (Marine & Technology), Keppel O&M, said the advanced discussion for the conversion of the GIMI, just two months after the first firm contract with Golar Hilli, was 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.

A further announcement will be made upon the execution of a firm contract, which is expected by October this year, 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, according to Keppel.

  • Keppel Corp. Ltd. also confirmed that KSI Production Pte Ltd. (KSI), an indirect wholly-owned subsidiary of the company, had entered into a sale and purchase agreement to acquire 50 ordinary shares representing 10% shareholding interest in the total registered issued share capital of Golar Hilli from Golar GHK Lessors Ltd. at US $1 per acquired share.

The acquisition, said Keppel, strengthens the alignment of strategic interests between Keppel Shipyard and Golar LNG, and reflects Keppel’s confidence in the prospects of the Golar Hilli project.

As part of the acquisition, KSI will also be extending a shareholders’ loan of $21.7 million to Golar Hilli, representing 10% of the total amount of shareholders’ loan extended to Golar Hilli, taking into account Golar Hilli’s capex.

Offshore