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The Golar Gimi LNG carrier. Image courtesy of Visualships.com.

Singapore’s Keppel Shipyard secured a firm $705 million contract from Golar Gimi Corporation Wednesday to convert the Gimi LNG carrier into an floating LNG vessel.

Golar LNG, the parent company of Golar Gimi, previously awarded Keppel a similar conversion contract for its Hilli LNG carrier.

The deal marks the exercise of the first of two options that were part of the Hilli conversion deal.

The work will cover design, detailed engineering and procurement of the marine systems and all of the conversion-related construction services.

Keppel will engage Black & Veatch to provide design, procurement and commissioning support services for the topsides, as well as the liquefaction process utilizing its established PRICO technology.

Full construction of the Gimi will start when Keppel Shipyard receives a notice to proceed, expected no later than November 2015.

In the meantime, orders for long-lead primary equipment such as gas turbines and cold boxes will be placed.

The Golar Gimi FLNGV is expected to be delivered around 33 months after Keppel receives the notice to proceed.

“This second contract comes just six months after the first contract, and we are encouraged by this positive development,” Keppel O&M managing director of marine and technology Michael Chia said.

Keppel Shipyard is a wholly-owned subsidiary of Singapore-based Keppel Offshore & Marine.

The deal is not expected to have any material impact on the net tangible assets and earnings per share of Keppel Corporation, the parent company of Keppel O&M, for the current financial year.