Oslo-listed Stolt-Nielsen has decided to award the construction of two (with options for further two) LNG tankers with 7,500 cbm capacity to Singapore-based Keppel Offshore & Marine, according to sources close to the deal.

The investment for both those vessels will be over US$50m and the deliveries are scheduled from 2018 onwards.

A few weeks ago, Stolt-Nielsen's top managers revealed that there were in advanced discussions with one shipyard based in Asia for two vessels tailor made to serve a developing LNG terminal onshore in the Italian port of Oristano, Sardinia. The ship order was subject to the release of the final approval on the project from the Sardinia region which came just yesterday thus allowing the project to go ahead. In the next few days, Stolt-Nielsen is therefore expected to proceed signing the shipbuilding contract with Keppel.

For Keppel, which has downsized dramatically this year on the back of the offshore slump, the order is an enormous fillip. Demand for small LNG tankers is set to be large in the coming years and could become a real revenue base for the troubled yard.