SINGAPORE rigbuilder Keppel Corporation said on Wednesday its wholly owned subsidiary Keppel Shipyard has signed a contract worth about US$684 million to convert a liquefied natural gas (LNG) carrier into a Golar floating liquefaction facility.
The conversion work by Keppel Shipyard will be done for Golar Gandria, a subsidiary of London-based LNG shipping company Golar LNG.
The award of the contract marks the exercise of the second of two options that were part of a contract Golar awarded to Keppel Shipyard for a previous similar conversion, Keppel said in a statement.
It added that full construction activities for the conversion will start only after Keppel Shipyard has received a notice to proceed, which is expected to be issued in 2016.
The converted floating liquefaction facility is expected to be delivered in about 31 months after receipt of the notice to proceed, it said.
Keppel Corp shares closed a cent higher at S$8.18 on Tuesday.