SINGAPORE (May 24): Keppel Singmarine, a wholly-owned subsidiary of Keppel Offshore & Marine, has secured a contract worth $103 million to build two Liquefied Natural Gas carrier vessels for Stolt-Nielsen Gas.

The LNG carriers, which will each have a capacity of 7,500 cubic metres, are expected to be completed in the second and third quarter of 2019, respectively.

Equipped with engines that can run on both diesel and LNG, the carriers will have a class notation for bunkering, which adds to their versatility.

The vessels will be able to transport, and also provide LNG bunkering services if required.

As part of the contract, Keppel Singmarine has also secured options to build another three similar units. Stolt-Nielsen Gas has six, 12 and 18 months from the effective date of the contract to exercise the options respectively.

“We are pleased to be selected by Stolt-Nielsen Gas to build their first two small-scale LNG carriers,” says Keppel Singmarine managing director Abu Bakar.

“This order extends our track record in providing solutions along the LNG value chain, which includes two dual-fuel harbour tugs that we are currently building,” he adds.

Keppel Corporation says the LNG carrier vessels contract is not expected to have a material impact on its net tangible assets or earnings per share for the current financial year.

Shares of Keppel Corp closed 4 cents higher at $6.59 on Wednesday.