Vessel sale causes Singapore giant to lose out on floating LNG conversion gig

As the Bermuda-headquartered Golar LNG has made a move to sell a 47-year-old liquefied natural gas (LNG) carrier, the Singapore-headquartered Seatrium, former Sembcorp Marine and Keppel Offshore & Marine, will not be able to carry out a previously agreed floating LNG (FLNG) conversion assignment.

The first two floating liquefaction vessels delivered by the Singaporean player to Golar LNG are Hilli Episeyo, deployed at the Kribi gas field off the coast of Cameroon, and FLNG Golar Gimi, deployed at the Greater Tortue Ahmeyim (GTA) field offshore Mauritania and Senegal.

However, Seatrium also secured a contract in July 2015 with a subsidiary of Golar LNG to convert Golar Gandria, a Moss-type LNG carrier, into an FLNG unit. The Bermuda-based firm’s sale of the 1977-built vessel for demolition in 2023 led the duo to let the third conversion contract lapse on December 16, 2024.

According to Seatrium, no physical vessel work was done; thus, letting the deal slip through its fingers is not anticipated to have any material financial impact on the earnings per share and net tangible asset per share for the current financial year.

“The demand for sustainable gas solutions remains healthy, underpinned by the energy transition. With a strong 60-year track record and product expertise, Seatrium is well positioned along the gas value chain to support the development of offshore energy assets. The Group remains committed to providing efficient and sustainable offshore and energy solutions,” underlined the Singapore-based player.

Seatrium’s string of recent contract awards encompasses several deals for repairs and upgrades across multiple industry segments; early engineering works related to BP’s newbuild floating production unit (FPU) destined for the U.S. Gulf of Mexico; and a deal secured with Petrobras for two Brazil-bound floating production, storage, and offloading (FPSO) units.

Meanwhile, Golar LNG joined forces with CIMC Raffles and Black & Veatch in September 2024 to bring to life an MK II FLNG vessel with an annual liquefaction capacity of 3.5 million tons of LNG per annum (mtpa).