Group could become an early player in projects to develop floating LNG facilities, says CEO
By
MR CHOO
Added that the outlook for the commercial property sector remains encouraging, with MBFC Tower 3 about 85% occupied. - FILE PHOTO
Added that the outlook for the commercial property sector remains encouraging, with MBFC Tower 3 about 85% occupied. - FILE PHOTO
KEPPEL Corporation is making preparations to tap business
opportunities that may arise from the US shale gas revolution, CEO Choo
Chiau Beng has revealed in the group's recently released annual report.
In particular, the group is "looking at projects in the area of floating LNG (liquefied natural gas) facilities", he said. LNG is natural gas that has been supercooled into a liquid so it can be shipped.
Keppel could become one of the early players in the development of these facilities if it does enter into such projects. No floating LNG facilities currently exist, although one is being developed by Royal Dutch Shell, and is due to start up in 2016.
Theoretically, such facilities will float above an offshore natural gas field and produce, liquefy, store and transfer LNG at sea before carriers ship it directly to markets.
Read? Conversion of a FLNG for Golar by Kep Corp
More ...
LONDON/SEOUL, March 6 (Reuters) - South Korean shipbuilder Samsung Heavy Industries on Wednesday cancelled a $2.39 billion order from Oslo-listed Flex LNG for four floating liquefied natural gas (FLNG) production units, the companies said.
Samsung said in a regulatory filing on Wednesday that it had cancelled the order, first made in 2008, due to a lack of financing by the European buyer.
Although Samsung did not name the company, Flex LNG confirmed in a separate statement on Wednesday that the order for four FLNG vessels has been abandoned.
Although prospects for the floating LNG industry have brightened, thanks to technological innovations, it remains commercially untested and no such facilities currently exist.
Royal Dutch Shell is the only company so far to have taken the leap with its flagship Prelude project off the coast of western Australia, due to be delivered by Samsung in 2016.
Flex and Samsung have held regular talks over the past few years in an attempt to resolve a dispute over a $458.7 million down payment that Flex LNG made to Samsung on the four orders.
In talks last year, Flex LNG wanted Samsung to redeploy the capital for the construction of a conventional LNG tanker, but the companies failed to reach a resolution, Flex LNG said.
"As previously announced, FLEX LNG considers the four shipbuilding contracts ... that were entered into with SHI (Samsung Heavy Industries) in 2008, to have been abandoned," it said in a statement.
"FLEX LNG has requested that SHI repays a net amount in excess of USD 300 million and appropriate actions are being taken to secure the repayment of the said funds," it said, referring to arbitration proceedings.
The firm hired lawyers Pincent Masons to claw back the money paid-in, which Samsung considers non-refundable, and has taken steps to initiate arbitration proceedings, it said.
In particular, the group is "looking at projects in the area of floating LNG (liquefied natural gas) facilities", he said. LNG is natural gas that has been supercooled into a liquid so it can be shipped.
Keppel could become one of the early players in the development of these facilities if it does enter into such projects. No floating LNG facilities currently exist, although one is being developed by Royal Dutch Shell, and is due to start up in 2016.
Theoretically, such facilities will float above an offshore natural gas field and produce, liquefy, store and transfer LNG at sea before carriers ship it directly to markets.
Read? Conversion of a FLNG for Golar by Kep Corp
More ...
UPDATE 1-Samsung Heavy cancels $2.4 bln order from Norway
By Oleg Vukmanovic and Joyce LeeLONDON/SEOUL, March 6 (Reuters) - South Korean shipbuilder Samsung Heavy Industries on Wednesday cancelled a $2.39 billion order from Oslo-listed Flex LNG for four floating liquefied natural gas (FLNG) production units, the companies said.
Samsung said in a regulatory filing on Wednesday that it had cancelled the order, first made in 2008, due to a lack of financing by the European buyer.
Although Samsung did not name the company, Flex LNG confirmed in a separate statement on Wednesday that the order for four FLNG vessels has been abandoned.
Although prospects for the floating LNG industry have brightened, thanks to technological innovations, it remains commercially untested and no such facilities currently exist.
Royal Dutch Shell is the only company so far to have taken the leap with its flagship Prelude project off the coast of western Australia, due to be delivered by Samsung in 2016.
Flex and Samsung have held regular talks over the past few years in an attempt to resolve a dispute over a $458.7 million down payment that Flex LNG made to Samsung on the four orders.
In talks last year, Flex LNG wanted Samsung to redeploy the capital for the construction of a conventional LNG tanker, but the companies failed to reach a resolution, Flex LNG said.
"As previously announced, FLEX LNG considers the four shipbuilding contracts ... that were entered into with SHI (Samsung Heavy Industries) in 2008, to have been abandoned," it said in a statement.
"FLEX LNG has requested that SHI repays a net amount in excess of USD 300 million and appropriate actions are being taken to secure the repayment of the said funds," it said, referring to arbitration proceedings.
The firm hired lawyers Pincent Masons to claw back the money paid-in, which Samsung considers non-refundable, and has taken steps to initiate arbitration proceedings, it said.
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