Uchenna Izundu
International Editor
LONDON, Jan. 26 -- Samsung Heavy Industries Co. Ltd. has let a $200 million contract to Kanfa Aragon AS to develop LNG topsides for one of the world's first floating LNG production vessels, scheduled to be delivered in 2011.
The contract builds on a letter of intent the companies signed previously. Kanfa will design and procure major equipment for the topside, which will process LNG on the ship. The 1.7 million tonnes/year capacity ship will focus on monetizing small and medium sized fields. Flex LNG will own and operate it.
Flex LNG said it was committed to the long-term business case for its project despite the global economic uncertainty. Along with its partners, it is carrying out front-end engineering and design (FEED) and pre-FEED work on various fields in Nigeria and Papua New Guinea so it can maximize usage of the ships.
Flex LNG has ordered four units from Samsung Heavy Industries in Korea, the first of which was to leave the yard in 2011. But completion has been delayed to 2012 to enable more flexibility in the current market, Jostein Ueland, the company's chief financial officer told OGJ.
"The hull was originally expected in December 2010, but this will now be June 2011," he said. "The hull for the second ship was for the end of June 2011 and would have sailed away 9 months later. The third ship's hull was to be delivered in September 2011 and [the hull] for the fourth unit, in March 2012. These [delivery] dates have all changed [by 6-7 months],"
Flex LNG is seeking to secure an offtake vessel for some other, undisclosed locations, Ueland said, but it has yet to decide which vessel will be assigned to each project.
Jan Erik Tveteraas, chief executive of Kanfa's parent company Sevan Marine ASA, said that despite the "unstable worldwide financial situation, floating LNG production is a growing market, and this contract puts us in an excellent position to take a major share of this market."
Kanfa Aragon is focusing on gas technologies and applications.
Contact Uchenna Izundu at [email protected].
