Golar Awards Keppel Another Huge LNG Carrier Conversion Contract

golar keppel flngv
Rendering of what the Golar Hilli will look like post-conversion, Image via Golar

Golar LNG awarded Keppel Shipyard a contract today worth approximatelyUSD $705 million to convert the 125,000 m3 LNG carrier Golar Gimi to a floating liquefaction facility (FLNGV).

As the above rendering shows, this project will involve adding immense amount of steel to the vessel and associated engineering work.

This is the second such order placed by Golar in the past week after they awarded Keppel a $735 million contract to convert the Golar Hilli into a FLNGV.

Keppel Shipyard says the work scope for the conversion will be similar to that for the Hilli.  Keppel Shipyard will provide the design, detailed engineering and procurement of the marine systems and all of the conversion-related construction services and Black & Veatch will provide design, procurement and commissioning support services for the topsides, as well as the liquefaction process utilizing its PRICO technology.

Full construction activities of the GIMI will only commence when Keppel Shipyard receives a notice to proceed, which the company expects no later than November 2015. In the meantime, orders for long-lead primary equipment such as gas turbines and cold boxes will be placed. The Golar Gimi FLNGV is expected to be delivered around 33 months after receipt of the notice to proceed.

Golar notes they have secured certain beneficial cancellation provisions, which if exercised prior to November 2015, will allow the termination of the contracts and the recovery of previous milestone payments, less a set cancellation fee.