Sembcorp Marine clinches FLNG conversion gig from New Fortress

Singapore’s Sembcorp Marine has secured a contract from US LNG firm New Fortress Energy to convert two Sevan drilling vessels into floating liquefaction facilities.

Sembcorp Marine said its unit Sembcorp Marine Rigs & Floaters has entered into master service agreements with NFE affiliates for the engineering and conversion of two Sevan cylindrical drilling vessels to FLNG liquefaction facilities, including the fabrication and integration of LNG topside modules.

The firm, which earlier this year signed a definitive merger deal with Keppel Offshore & Marine, expects to deliver the hull conversion and fabrication of topsides for the first FLNG liquefaction in the first half of 2024 through the work engagement contract.

“Work on the second FLNG liquefaction facility project is expected to be contracted through further work engagement contracts to Sembcorp Marine at a later date,” it said.

Sembcorp Marine did not reveal the price tag of the contract.

The two liquefaction units will host the NFE-designed Fast LNG liquefaction production facility with a capacity of approximately 1.4 mtpa.

A separate LNG tanker moored near the FLNG liquefaction facility would store LNG produced at the facility.

While NFE currently has Fast LNG liquefaction facilities on jack-up rigs under construction in the US, this marks the first set of two Sevan cylindrical hulls that would become FLNG liquefaction facilities, according to Sembcorp Marine.

Wes Edens-led NFE plans to install up to eight floating liquefaction facilities each with a capacity of about 1.4 mtpa in the US Gulf of Mexico using its “Fast LNG” liquefaction design that incorporates modular, midsize liquefaction technology with jack up rigs or similar offshore infrastructure.

NFE previously awarded FLNG contracts to Fluor and ECONNECT Energy as well.

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