Keppel to build two LNG carriers for Stolt-Nielsen worth S$105 million

Keppel Offshore & Marine (Keppel O&M) through its wholly-owned subsidiary Keppel Singmarine, has signed two additional contracts with Stolt-Nielsen Gas B.V. (Stolt-Nielsen Gas), a subsidiary of Stolt-Nielsen Limited, following the exercise by Stolt-Nielsen Gas of its options to build two additional small-scale LNG carriers worth a total of around S$105 million.

Three options were granted to Stolt-Nielsen Gas as part of the original contract signed in May 2017 between Keppel Singmarine and Stolt-Nielsen Gas to build two LNG carriers. The first option lapsed in November 2017, while the second and third options have now been exercised by Stolt-Nielsen Gas.

Mr Abu Bakar, Managing Director (Gas & Specialised Vessels), Keppel O&M, said, “We are pleased that Stolt-Nielsen Gas has exercised their options to build two additional LNG carriers. 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 4^th and 5^th vessels capable of LNG bunkering as well as the 11^th and 12^th 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.”

Similar to its preceding two units, the two LNG carriers will each have a capacity of 7,500m³, and come equipped with engines that can run on both diesel and LNG. To be completed in 4Q 2020 and 1Q 2021 respectively, the carriers will have a class notation for bunkering which enables the provision of LNG bunkering services if required.

With the tightening of global emissions standards, the marine industry is increasingly adopting LNG as a marine fuel. Economical and quick to market, small-scale LNG projects are a means to reaching end users located in remote areas not served by pipelines.

The abovementioned contracts are not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year.