Keppel, Stolt-Nielsen LNG Carrier Deal Lapses

An agreement signed by Singaporean shipbuilder Keppel Singmarine and Stolt-Nielsen for construction of two additional small-scale LNG carriers has lapsed, Keppel Corporation said April 12.

The deal was announced in October last year under which Keppel Singmarine signed two additional contracts with Stolt-Nielsen Gas, a subsidiary of Stolt-Nielsen, following the exercise by Stolt-Nielsen Gas of its options to build two additional small-scale LNG carriers worth a total of around Singaporean $105mn ($76mn). 

In May 2017, Keppel Singmarine and Stolt-Nielsen Gas had signed a contract to build two carriers with an option for three more. Although, first option lapsed in November 2017, Stolt-Nielsen Gas decided to exercise the second and third options. Now, these options too have lapsed.

“Certain conditions precedent for the contracts to be effective have not been met, and Keppel Singmarine and Stolt-Nielsen Gas have mutually agreed to let the contracts lapse due to commercial considerations but will continue to explore future opportunities together,” Keppel said.