Keppel says wins FSRU conversion contract

Singapore’s Keppel Offshore & Marine said it has secured a contract to convert one LNG carrier into a floating and regasification unit (FSRU).

Keppel Shipyard, a unit of Keppel Offshore & Marine, has signed a limited notice to proceed with a global provider of LNG shipping services, according to a statement on Thursday.

Under the contract, the yard would start early works on converting the LNG carrier into an FSRU.

The scope of the contract includes engineering work commencing in the fourth quarter this year, while Keppel Offshore & Marine expects the full notice to proceed for the remainder of the work within the first quarter of 2022 when the project reaches final investment decision.

Keppel Offshore & Marine did not provide any additional information regarding this order.

Besides this contract, Keppel Shipyard has received a letter of award from BW Offshore, a unit of Singapore-based gas giant BW, to undertake the integration work on a newbuild FPSO.

The total value of the two projects would reach around S$200 million ($146.2 million), including the full notice to proceed for the FSRU contract, Keppel Offshore & Marine said.

Keepel Shipyard has earlier this year completed the conversion of the 137,000-cbm BW Tatiana FSRU for BW LNG, a unit of BW, and US-based Invenergy.

This FSRU arrived at its new home at the Port of Acajutla, El Salvador, last month.

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