Keppel Shipyard Limited (Keppel Shipyard), a wholly-owned subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), has signed a contract worth approximately US$684 million with Golar Gandria N.V., a subsidiary of Golar LNG Limited (Golar LNG), to perform the conversion of a Moss type Liquefied Natural Gas (LNG) carrier, the GANDRIA, into a Golar Floating Liquefaction (GoFLNG) facility. The contract will become effective upon the parties fulfilling certain conditions precedent by 21 September 2015.
The award of the conversion of the GANDRIA marks the exercise of the second of two options, which were part of a contract awarded by Golar to Keppel Shipyard for the conversion of the Moss LNG carrier, HILLI, into a GoFLNG facility. The first option was exercised in December 2014 for the conversion of the GIMI, also a Moss type LNG carrier.
Mr Michael Chia, Managing Director (Marine & Technology), Keppel O&M, said, "We are extremely pleased to be executing a third GoFLNG conversion contract and thank Golar for entrusting us with this repeat contract and for their continued confidence in our capabilities. Together with Golar and our partner Black & Veatch, we are confident of delivering these projects within the budgeted time and cost.
"GoFLNG facilities are set to reduce the cost and time required to monetise and deliver offshore gas to market. Now a year underway, the Hilli conversion project is progressing to plan. This third GoFLNG contract re-validates our delivery timeframes and price levels, further demonstrating the technical and commercial competitiveness, and lower implementation risks inherent in our solution.
"Keppel Shipyard has recently set up a new design and technology arm, Gas Technology Development (GTD), to focus further efforts on solutions for LNG markets. With enhanced capabilities and more innovative solutions, we look forward to supporting our valued customers like Golar in commercialising mid-scale LNG offshore sources in relatively benign met-ocean conditions in a more timely and cost-efficient manner."
Mr Gary Smith, CEO, Golar LNG, said, "We are happy to deepen our collaboration with Keppel whose impressive track record with innovative and sophisticated conversion projects will help Golar provide a fast-track and cost effective liquefaction solution to our clients looking to develop their natural gas assets. Keppel has successfully performed the conversions of three of our LNG carriers to Floating Storage and Regasification Units in the past. We are now on track to repeat that success in our floating liquefaction efforts as well."