The 170,000㎥ class LNG-FSRU built by HD Hyundai Heavy Industries and delivered in 2020. Photo by HD Hyundai Marine Solutions
HD Hyundai's comprehensive marine solutions company, HD Hyundai Marine Solutions, announced on the 11th that it has recently signed a $30 million (approximately 40.9 billion KRW) contract to convert a Floating Liquefied Natural Gas Storage Unit (LNG-FSU) with a European shipping company.
Established in 2016, this is the first LNG-FSU conversion project won by HD Hyundai Marine Solutions. The company will undertake the conversion of a 138,000㎥ LNG carrier built in Spain in 2004 into an LNG-FSU.
The entire project process, including design, procurement, fabrication, transportation, installation, and commissioning, will be carried out by HD Hyundai Marine Solutions on a turnkey basis to maximize profitability.
HD Hyundai Marine Solutions plans to complete and deliver the project by the first half of next year. The converted LNG-FSU will be installed in the Central America region to supply LNG to nearby thermal power plants.
An LNG-FSU is a type of "offshore LNG terminal" that stays at a specific location at sea for an extended period, periodically receiving and storing LNG, and delivering it to onshore power plants or storage facilities as needed.
The LNG-FSU conversion is considered economical and environmentally friendly as it not only recycles aging LNG carriers but also can be relocated and reinstalled according to demand.
Unlike traditional onshore and offshore LNG plants, which typically take more than 3 to 4 years to construct, LNG-FSU conversions can be completed within a year if expedited. This has drawn attention as an alternative for LNG import via sea, especially in Europe following the Russia-Ukraine war.
An HD Hyundai Marine Solutions official stated, "The LNG-FSU conversion business is one of the most challenging projects as it requires no standardized design and demands a high level of technology and expertise. Based on the experience and capabilities accumulated through various conversion projects, we plan to expand our market share in the eco-friendly ship conversion sector."
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