Singapore conglomerate Keppel Corp on Thursday said it secured order worth more than US$400 million from Honolulu-based Pasha Hawaii to build two liquefied natural gas (LNG) containerships .
The order was secured by Keppel AmFELS, a wholly owned subsidiary of Keppel Offshore & Marine in the United States.
"Keppel Offshore & Marine is at the forefront of designing vessels that run on LNG propulsion systems and has the experience in LNG vessel conversions as well as the expertise in newbuild specialised vessels," said Simon Lee, president of Keppel AmFELS.
The dual fuel LNG vessels will be built to Keppel's proprietary design with delivery of the first vessel expected in the first quarter of 2020, and the second vessel in the third quarter.
The containerships will be able to run completely on LNG fuel, reducing their environmental impact and increasing fuel efficiency, the company said in a statement.
When compared to conventional fuels, LNG is a much cleaner alternative fuel for shipping and offers significant environmental benefits, including up to 25 percent carbon dioxide emissions from engine exhaust emissions.
Located in Brownsville, Texas, Keppel AmFELS possesses comprehensive facilities in the construction, refurbishment and repair of a variety of projects.
Shares in Keppel Corp rose as much as 2 percent to S$6.42 on the Singapore Exchange. The stock has gained 11 percent so far this year.