Keppel FLNG MOSS Vessel Conversion Contract Activated

By George Backwell
Thursday, July 03, 2014
An FPSO: File photo

Keppel Shipyard says that the contract it entered into earlier with Golar Hilli Corporation to perform the world's first-of-its-type conversion of an existing Moss LNG carrier, the Hilli, into a Floating Liquefaction Vessel (FLNGV), has become effective. The contract is worth approximately US$735 million.

In carrying out the FLNGV conversion, Keppel Shipyard explains that it shall be responsible for the provision of the design, detailed engineering and procurement of the marine systems and all of the conversion-related construction services.

Keppel Shipyard's scope also includes engaging Black & Veatch to provide design, procurement and commissioning support services for the topsides and liquefaction process. Black & Veatch's PRICO technology has been selected for the liquefaction process because of its long-established record in the marketplace.

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.

Keppel adds that 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.

Michael Chia, Managing Director (Marine & Technology), Keppel O&M, said, "The FEED study for Golar has come into fruition with the award of the world's first FLNG conversion project to Keppel Shipyard. We are excited to collaborate with trend-setting partners such as Golar and Black & Veatch. Keppel Shipyard had successfully delivered to Golar the world's first Floating Storage and Regasification Unit (FSRU) back in 2008, which was followed by two more similar units."

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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