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REPURPOSING SAVES A THIRD OF GHG EMISSIONS, SAYS KEPPEL

Friday, August 21, 2020 

Keppel O&M's conversion of a LNG Carrier into a Floating Liquefaction Vessel (FLNG) using a design and execution model jointly engineered with Golar LNG is estimated to save approximately 33% of greenhouse gas (GHG) emissions compared to an FLNG new build, according to a study conducted by environmental consultants, Environmental Resources Management (ERM).

The study, which assesses the converted FLNG Hilli Episeyo and a new build FLNG of a comparable design and specification, concluded that the converted FLNG saves a total of 63,343 tons of GHG emissions. For example, utilisation of virgin steel was reduced by 39% in the converted FLNG Hilli Episeyo, contributing significantly to the reduction in GHG emissions.

Chor How Jat, MD (Conversions & Repairs) Keppel O&M, said: “We are committed to driving cleaner and more sustainable solutions for the offshore, marine and energy industries. As a pioneer of vessel conversions, Keppel O&M promotes a circular economy as well as supports customers in reducing their emissions and achieving significant savings in resource consumption. In comparison to a new build FLNG, a converted FLNG has a smaller carbon footprint, is more cost-effective, and is faster-to-market. Keppel O&M has previously converted several vessels into FSRUs for Golar, and to date, is the only yard trusted by Golar for its FLNG conversion capabilities.”

Hilli Episeyo – the world’s first converted FLNG – has maintained 100% commercial uptime since its delivery in 2017, and recently surpassed its 42nd cargo dispatch. Keppel O&M is currently undertaking its second FLNG conversion, Gimi, for Golar which is being repurposed for the 20-year BP Greater Tortue Ahmeyim contract offshore West Africa.

Iain Ross, CEO Golar LNG, said: “Golar has long understood the merits of repurposing its fleet of high quality assets, having repurposed five vessels over the last 13 years with a further two currently in the process of being converted. The company has never scrapped an asset. The advantages of cost and speed to market have always been well understood and easy to quantify. Golar has consistently believed in the sustainability of this approach too and Keppel’s study now quantifies the environmental advantages of this part of our FLNG business model. Sustainability is integral to Golar’s business strategy and an FLNG conversion solution helps us minimise our carbon and environmental footprint. Use of FLNG also allows our customers to minimise theirs”.

Commissioned by Keppel O&M, the study by ERM assesses the converted and new build FLNG across three stages of the project life cycle, namely the end of life of the LNG tanker, repurposing or shipbuilding of the FLNG, and maintenance of the FLNG. Keppel O&M claims an extensive track record in the conversion of vessels. In addition to converting the first FLNG in 2017, Keppel O&M converted the first FPSO in 1981 and the first Floating Storage Regasification Unit (FSRU) in 2008. It has converted 134 production vessels including FPSOs, FLNGs and FSRUs.

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