Keppel O&M’s Keppel Shipyard in Singapore has won a contract to convert TOTE Maritime Alaska vessel Midnight Sun to dual-fuel liquefied natural gas (LNG) propulsion. This will be the first major conversion of a large roro vessel. The work is scheduled to begin in December 2016, with a completion schedule of 90 days.
When converted, Midnight Sun will have reduced its emissions of particulate matter by 91 per cent, NOx by 100 per cent, SOx by 90 per cent and carbon dioxide by 35 per cent.
John Parrott, president of Totem Ocean, said: “The removal and replacement of the four engines, adding 2,200m3 of LNG capacity along with the addition of 47km of new cabling, is a complex undertaking. We are confident that Keppel will provide safe, timely, high-quality work to ensure the best outcome for Totem Ocean and our customers.”
The Midnight Sun’s sister ship, North Star, will be converted to LNG in 2016-17. Keppel will also be performing that conversion.
Michael Chia, managing director of Keppel’s marine and technology divisions, is confident about gaining more such conversions. “Keppel is well positioned to capture the growing LNG market to meet the industry’s needs for environmentally sound solutions,” he said.
In December 2015 Keppel O&M confirmed that it had won four new contracts, with two of them for Keppel Shipyard in Singapore. One is for a floating liquefied natural gas (FLNG) storage unit for Armada Floating Gas Storage Malta, part of Malaysian group Bumi Armada. This unit is due to be completed in the third quarter of 2016. The yard will also build a FPSO vessel for Yinson Production, another Malaysian offshore service company. Work started in the first quarter of 2016.
Mr Chia said: “This is our third conversion or upgrading project for the joint venture. We are confident that this FPSO will be as successful as our first two FPSOs, Armada Sterling and Armada Sterling II. This also marks our 13th conversion or upgrading project for Bumi Armada. FPSOs continue to be the preferred product for deepwater production and we are pleased that our customised units have proven to be efficient solutions.”
The other two contracts are for Keppel O&M’s overseas yards. One is for an FPSO for Modec Offshore Production Systems (Singapore) to be built at Keppel Fels Brasil’s BrasRels shipyard in Rio de Janeiro. The other is to upgrade a barge for BP Exploration at the Caspian shipyard in Baku, Azerbaijan.
Keppel O&M’s chief executive Chow Yew Yuen said: “Even in challenging market conditions, we are glad to be the yard of choice for operators. Our wide spectrum of capabilities allows us to work on various projects ranging from oil production to offshore support services. Keppel O&M has a long track record in delivering projects on time and within budget. The confidence shown in us is a reflection of Keppel’s proven track record in delivering quality products competitively, with high standards of safety and to customers’ satisfaction.”
Earlier, Keppel Shipyard was awarded work for drillship Belford Dolphin of Dolphin Drilling including renewal survey and modification, and for Saipem, Keppel Shipyard will undertake major refurbishment and upgrading works that include installation of a new 750-tonnes abandon and recovery winch and an additional thruster, as well as a living quarters extension for a field development ship.
Mr Chia commented: “Despite the headwinds faced by the industry due to the current low oil price environment, Keppel Shipyard continues to receive active enquiries for its wide range of expertise including repair works and LNG solutions. By leveraging our strong track record in repair, upgrade and modification, as well as expanding on our LNG capabilities which include extensive experience in LNG carrier repairs and floating storage regasification unit conversions, we are able to continue attracting new customers while maintaining the trust of repeat customers to keep our yards busy.”
In August 2015 Keppel Offshore & Marine USA acquired the offshore rig business of US-based Cameron International Corp, which produces LeTourneau jackup rig designs. The acquisition means that Keppel will be able to offer customers the LeTourneau rig designs through the sale of rig kits to shipyards, or deliver ready-to-drill rig solutions from Keppel yards worldwide.
In September two ice class offshore supply vessels and an ice class multipurpose rescue vessel, built by another Keppel subsidiary, Keppel Singmarine were officially named. Bumi Uray, Bumi Pokachi and Bumi Naryan-Mar will operate for Armada Berhad in the Caspian Sea.
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