Keppel seals its lips on Golar LNG deal cost

But it is a 'sizeable contract'.

According to Nomura, an Upstream Online article and press release by Golar LNG said that Keppel has secured a sizeable contract from Golar LNG to convert an existing Moss LNG carrier into a floating LNG vessel platform.

The contract has not been announced by Keppel yet and the value of the contract remains undisclosed. However, Upstream highlighted that RS Platou had estimated USD1bn capex for the entire project, with the conversion contract likely to be lower.

Golar LNG plans to use the converted vessel, with capacity of 2 mmtpa for fast-track exploitation and development of its associated gas fields.

According to Golar, it will convert its old LNG tanker into a floating LNG vessel (FLNGV) or production plant, and is eyeing African flared gas and pipeline systems as a source of supply. The vessel will produce around 2mn metric tons of LNG annually.

Golar stated in its press statement that Keppel will start the FEED (front end engineering and design) study in November and detailed design and engineering is expected to be concluded around mid-2013 when vessel conversion is expected to start.

The first unit will be developed through several construction stages in order to accommodate customer requirements and is expected to be ready for production by 1Q15. Golar
retains the option to convert two additional vessels with Keppel under the same agreement.

Golar had previously converted three other moss carriers into FSRU of which two were converted by Keppel.

Golar LNG, majority owned by John Fredriksen, is a London-based owner and operator of LNG carriers and operates across three business segments: LNG transportation, floating storage & re-gasification unit (FSRU) and floating liquefaction (FLNG).

According to its website, Golar LNG has a fleet of 13 LNG vessels with another 13 newbuilds to be delivered starting 3Q13.

Keppel’s previous awards from Golar include conversion of Golar Winter, a membrane LNG carrier into a FSRU in 2008 and world’s first LNG FSRU conversion in 2006 for Golar Spirit. Golar Spirit conversion was worth SGD90mn though Keppel did not disclose the value of conversion contract for Golar Winter.