Keppel Offshore & Marine’s conversion of a Liquefied Natural Gas Carrier (LNGC) into a Floating Liquefaction Vessel (FLNG) using a design and execution model jointly engineered by Keppel O&M and Golar LNG Limited (Golar), 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. This is equivalent to taking around 13,500 cars off the road for a year.
The repurposing of LNGCs into FLNGs contributes to the circular economy, adding decades to the life of the vessel and recapturing value that would have been lost through disposal, as well as reducing the consumption of materials that would have been needed for a new build. For example, utilisation of virgin steel was reduced by 39% in the converted FLNG Hilli Episeyo, contributing significantly to the reduction in GHG emissions.
Mr Chor How Jat, Managing Director (Conversions & Repairs) of 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.”
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. A summary of the study is provided in Annex A.
Lauding vessel conversion as a recycling best practice for companies, Mr Nat Vanitchyangkul, Asia Pacific Sustainability Lead of ERM shared, “By enabling a second lease of life for vessels, Keppel O&M not only delivers more function from less consumption, but also helps its customers to defray the environmental impacts caused during vessel decommissioning. This circular economy initiative should be replicated as a best practice by offering businesses the prospect of delivering more sustainable products, as well as securing bottom line savings.”
Keppel O&M has an extensive track record in the conversion of vessels. In addition to converting the world’s first FLNG in 2017, Keppel O&M converted the world’s first Floating Production Storage and Offloading vessel (FPSO) in 1981 and the world’s first Floating Storage Regasification Unit (FSRU) in 2008. It has converted 134 production vessels including FPSOs, FLNGs and FSRUs.
(Source: Keppel O&M)