Sembcorp Marine Ltd, through its wholly-owned subsidiary, Sembcorp Marine Rigs & Floaters Pte Ltd, entered into Master Service Agreements with New Fortress Energy Inc. affiliates for the engineering and conversion of two Sevan cylindrical drilling vessels to Floating LNG (“FLNG”) liquefaction facilities, including the fabrication and integration of LNG topside modules.
The hull conversion and fabrication of topsides for the first FLNG liquefaction facility is scheduled for delivery in the first half of 2024 through the Work Engagement Contract awarded by NFE. Work on the second FLNG liquefaction facility project is expected to be contracted through further Work Engagement Contracts to Sembcorp Marine at a later date.
The two FLNG liquefaction units will host the NFE-designed Fast LNG liquefaction production facility with a capacity of approximately 1.4 mtpa (million tonnes per annum). LNG produced will be stored in a separate LNG tanker moored near the FLNG liquefaction facility. While NFE currently has Fast LNG liquefaction facilities on jack-up rigs under construction in the U.S., this marks the first set of two Sevan cylindrical hulls to be re-purposed into FLNG liquefaction facilities.
Mr William Gu, Senior Vice President & Head of Sembcorp Marine Rigs & Floaters Pte Ltd, said, “We are pleased and honoured to partner New Fortress Energy in its Fast FLNG programme through these two FLNG conversion projects incorporating SCM’s proprietary Sevan cylindrical hull design. Marking SCM’s successful penetration of the FLNG market, these projects allow our customer to rapidly deploy FLNG facilities to capture the growing demand for LNG liquefaction terminals, and to tap on SCM’s full suite of floating and nearshore LNG solutions that are well placed to meet the needs of the burgeoning LNG market.”
Mr Wong Weng Sun, President and CEO of Sembcorp Marine Ltd, said, “These landmark FLNG conversion projects signal the broadening of our capabilities to provide customised solutions to clients across the energy value chain. Over the years, Sembcorp Marine has advanced its EPC capabilities towards solution-driven initiatives through investments in technology companies such as Sevan SSP. Our continuous R&D efforts have also enabled Sembcorp Marine to successfully develop and commercialise our proprietary designs and solutions like this FLNG conversion and our Wind Turbine Installation Vessel (WTIV) for the cleaner energy and renewables segment awarded earlier this year. Sevan SSP circular hull design also offers excellent solutions for the electrification of offshore hydrocarbon production units, offshore wind floating substations and converter platforms, and carbon capture, utilisation and storage (CCUS) applications.”
The above contract is not expected to have a material impact on the net tangible assets or earnings per share of Sembcorp Marine for the current fiscal year.
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