Sembcorp Marine secured FLNG facilities conversion projects from New Fortress Energy

October 20, 2022
By: Staff


In the news

Sembcorp Marine Ltd (“Sembcorp Marine” or “SCM”), through its wholly-owned subsidiary, Sembcorp Marine Rigs & Floaters Pte Ltd, entered into Master Service Agreements with New Fortress Energy Inc. (NASDAQ: NFE) 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.

About Sembcorp Marine

Sembcorp Marine Ltd provides innovative engineering solutions to the global offshore, marine and energy industries. Headquartered in Singapore, the Group has close to 60 years of track record in the design and construction of rigs, floaters, offshore platforms and specialised vessels, as well as in the repair, upgrading and conversion of different ship types. Sembcorp Marine’s solutions focus on the following areas: Renewables, Process, Gas, Ocean Living and Advanced Drilling Rigs.
Sembcorp Marine’s customers include major energy companies, owners of floating production units, shipping companies and cruise and ferry operators. They are supported by four commercial units: Rigs & Floaters; Repairs & Upgrades; Offshore Platforms and Specialised Shipbuilding.

Sembcorp Marine operates shipyards and other facilities in Singapore, Indonesia, the United Kingdom, Norway and Brazil.

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About New Fortress Energy

New Fortress Energy Inc. (NASDAQ: NFE) is a global energy infrastructure company founded to help address energy poverty and accelerate the world’s transition to reliable, affordable, and clean energy. The company owns and operates natural gas and liquefied natural gas (LNG) infrastructure, ships and logistics assets to rapidly deliver turnkey energy solutions to global markets. Collectively, the company’s assets and operations seek to support global energy security, enable economic growth, enhance environmental stewardship, and transform local industries and communities around the world.