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$5bn deal for LNG vessel

$5bn deal for LNG vessel
South Korean shipyard Samsung Heavy Industries and French group Technip have bagged a $5bn deal to build a floating liquefied natural gas vessel for Shell.

South Korean shipyard Samsung Heavy Industries and French group Technip have bagged a $5bn deal to build a floating liquefied natural gas vessel for Shell.

South Korean shipyard Samsung Heavy Industries and French group Technip have bagged a $5bn deal to build a floating liquefied natural gas vessel for Shell.

SHI said it had been awarded exclusive rights to develop LNG floating storage production vessels for Shell over the next 15 years.

Shell, one of the world"s top three oil majors, has signed the agreement covering the design, engineering, construction and installation of a ship that can produce LNG from remote gas fields.

The deal with Shell will remain viable for 15 years and means the European oil company has shipyard space for more than one of these vessels.

SHI is expected to build as many as 10 FLNG vessels worth a total of $50bn over the 15 year period of the deal.

Shell has also agreed to let Technip and SHI commence front-end engineering and design work for a ship that can produce up to 3.5m tonnes of LNG per annum.

The ship will be around 450 m long and 70 m wide and will have a topside weight of more than 50,000 tonnes, said Shell.

?This marks a milestone in developing our generic FLNG solution. We are progressing with several potential applications globally. These are gas fields for which the FLNG solution is the most viable approach,? Shell executive vice-president of upstream operations Jon Chadwick said.

Technip chief executive Thierry Pilenko said the agreement would bring together LNG processing, offshore facilities and subsea infrastructure under one project.

SHI will use its experience in building LNG carriers and oil FPSOs to help design and build the FLNG ship for Shell.

Flex LNG has already ordered four FLNGs from the South Korean shipbuilder.

www.TurkishMaritime.com.tr

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