Keppel Offshore & Marine’s (O&M) subsidiary Keppel Shipyard has finalised a $735m deal with Golar Hilli to convert an existing Moss LNG carrier, the Hilli, into a floating liquefaction vessel (FLNG).

The deal follows a front-end engineering and design study carried-out by Keppel Shipyard and EPC contractor, Black & Veatch, to convert up to three LNG carriers into FLNG vessels.

Keppel O&M Marine & Technology managing director Michael Chia 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 see this project as another excellent opportunity to offer innovative solutions to help address the growing midstream needs in bringing small and mid-scale LNG to market to meet the rising global demand for energy."

"We see this project as another excellent opportunity to offer innovative solutions to help address the growing midstream needs."

As part of the contract, Keppel will provide design, detailed engineering and procurement of the marine systems and conversion-related construction services.

The scope of the contract also includes services for the topsides and liquefaction process.

Keppel Shipyard will collaborate with Black & Veatch to deploy the latter’s PRICO technology for the liquefaction process.

The design and engineering works will start soon, including the renewal of key marine systems onboard the vessel, while the manufacturing of topsides has already commenced, according to Keppel. The Hilli will reach Keppel Shipyard for conversion work by the end of this year.

The project, which is said to be the first of its kind, will take about 31 months and is expected to be completed in early 2017.

Earlier this week, Keppel Shipyard was awarded a contract to convert a floating production storage and offloading vessel for Armada Kraken.