Keppel: To build another two LNG carriers worth around S$105 million for Stolt-Nielsen

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Keppel Singmarine has signed another two contracts with Stolt-Nielsen Gas to build two additional small-scale LNG carriers worth a total of around S$105 million, Keppel said in a filing to SGX on Sunday.

That was after Stolt-Nielsen Gas exercised its two out of three of its options in the original contract, signed in May 2017, to build two LNG carriers, it said. The first option lapsed in November 2017, with the remaining two now exercised, it said.

The two new LNG carriers will each have a capacity of 7,500 cubic meters, with engines that can run on both diesel and LNG, it said, noting this was similar to the previous two units. The carriers are set to be completed in the fourth quarter of 2020 and the first quarter of 2021 respectively, Keppel said.

“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,” Abu Bakar, managing director of gas and specialized vessels at Keppel Offshore & Marine, said in the statement. “We look forward to furthering this track record as the industry increasingly adopts LNG as a marine fuel.”

LNG’s adoption as a marine fuel comes amid tighter global emissions standards, it noted. Small-scale LNG projects are also able to reach end-users in remote areas not served by pipelines, it added.

Stolt-Nielsen Gas is a subsidiary of Stolt-Nielsen, it said. Keppel Singmarine, a wholly owned subsidiary of Keppel Offshore & Marine, is a specialized shipbuilding unit, it said.

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