Keppel Shipyard FLNG contract confirmed

Golar Hilli Corporation, a subsidiary of Golar LNG, has contracted Keppel Shipyard to carry out the conversion on the Moss-type LNG carrier Hilli. The contract value is about US$735million, and completion is scheduled for early 2017.

Keppel Shipyard will undertake design, detailed engineering and procurement of the marine systems and all of the conversion-related construction services. To company is to engage Black & Veatch to provide design, procurement and commissioning support services for the topsides and liquefaction process, using the Black & Veatch PRICO liquefaction technology. The two companies had worked together to carry out a study on such conversions, as part of an agreement with Golar to convert up to three LNG carriers into FLNG vessels. The conversion has been approved in principle by DNV.

Keppel O&M MD Michael Chia said that the conversion was a world first, building on the delivery of the first FRSU to Golar by Keppel in 2008: “It is an honour to be entrusted once again by Golar with this definitive FLNG vessel, which reaffirms Keppel’s leadership in complex offshore conversion projects. We see this project as another excellent opportunity to offer innovative solutions to help address the growing midstream needs in bringing small and mid-scale LNG to market to meet the rising global demand for energy. Mid-sized FLNG solutions such as this one offer a faster and more cost effective liquefaction solution.”

Detailed design and engineering activities will commence shortly, and the Hilli will be delivered to Keppel Shipyard during 2014 to initiate renewal of key marine systems onboard the vessel while the manufacturing of topsides commences.