Keppel embarks on $735m ship conversion project with Golar Hilli

Two more deals are in the pipeline.

The rising number of natural gas investments is bringing a tide of projects to Keppel Shipyard. Keppel’s $735m ship conversion contract with Golar Hilli has finally taken effect, the company announced today.

Keppel is going to perform the world’s first conversion of a Moss LNG Carrier into a Floating Liquefaction Vessel (FLNGV), a project that is expected to be completed in 2017.

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

Here’s more:
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.

According to the Douglas-Westwood World FLNG Market Forecast, the global FLNG industry is expected to attract more than US$65 billion of investments through to 2020, driven by rising costs of onshore LNG terminals.

Asia-Pacific, in particular, is expected to draw a majority of investments in the FLNG sector with its sizeable line-up of regasification and liquefaction projects.

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

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