Keppel wins contracts from Stolt-Nielsen Gas to build LNG carriers

9 October 2018 (Last Updated October 9th, 2018 09:53)

Singapore-based firm Keppel Offshore and Marine (Keppel O&M), through its subsidiary Keppel Singmarine, has secured contracts from Stolt-Nielsen Gas to build two additional small-scale LNG carriers.

Keppel wins contracts from Stolt-Nielsen Gas to build LNG carriers
Stolt Kittiwake. Credit: John Eyres.

Singapore-based firm Keppel Offshore and Marine (Keppel O&M), through its subsidiary Keppel Singmarine, has secured contracts from Stolt-Nielsen Gas to build two additional small-scale LNG carriers.

The contracts come after Stolt-Nielsen Gas chose to exercise its options awarded to it as part of the original contract signed with Keppel Singmarine in May last year.

Under the original contract, which includes three options, Keppel Singmarine received an order to build two LNG carriers. The total value of the contracts for the two additional LNG carriers stands at around S$105m ($75.88m).

Keppel O&M Gas and Specialised Vessels managing director Abu Bakar said: “It reflects the partnership that we have built over the past year and Keppel O&M’s ability to leverage our newbuild and LNG expertise to provide customised solutions.

“These LNG carriers will be the fourth and fifth vessels capable of LNG bunkering as well as the 11th and 12th LNG-powered vessels that Keppel will be building. We look forward to furthering this track record as the industry increasingly adopts LNG as a marine fuel.”

The new LNG carriers will each have a capacity of 7,500m³ and will feature engines that run on both diesel and LNG.

“We look forward to furthering this track record as the industry increasingly adopts LNG as a marine fuel.”

Keppel O&M noted that the carriers will also have a class notation for bunkering, which enables the provision of LNG bunkering services if required.

The first LNG carrier is expected to be built by the fourth quarter of 2020, while the second carrier will be completed by the first quarter of 2021.

Shipping companies are increasingly adopting LNG as marine fuel due to the tightening of global emissions standards.

Small-scale LNG projects can be used to serve end users located in remote areas.

Keppel Offshore & Marine offers offshore rig design, construction and repair, ship repair and conversion, as well as specialised shipbuilding services.