Keppel Corp confirms LNG vessel deal with Golar

Singapore’s Keppel Corp, the world’s largest oil rig builder, said its unit agreed with Norway’s Golar LNG to work on the conversion of up to three liquefied natural gas (LNG) vessels into floating LNG (FLNG) vessels.

The Business Times newspaper reported the deal is worth an estimated US$600 million ($735 million). Keppel did not give a value in its statement.

After completing a study, Keppel Shipyard will work with Golar LNG on the conversion and engineering of the first of the three FLNG vessels, the company said. There will be an option to convert the other two FLNG vessels at a later date.