SHI eyes rise in demand for offshore LNG facilities
South Korean shipbuilder Samsung Heavy Industries (SHI) expects global demand for floating LNG units to grow this year.
Demand should increase for both import and export units, SHI noted. Floating storage and regasification units (FSRUs) take less time to install and require less investment than onshore import terminals, the firm said, making them an attractive option for prospective operators.
And with recent growth in global liquefaction capacity, firms such as Japanese owner Mitsui OSK Lines are seeking to develop their offshore LNG import businesses.
FSRUs typically require 12-24 months for construction and installation, compared with around five years for a land-based unit. And the vessels can often also operate as LNG carriers, allowing operators to charter them on the freight market if utilisation falls below expectations. A number of FSRU owners, such as Norwegian firm Hoegh LNG and US owner Excelerate Energy, have FSRU vessels operating on the LNG carrier market.
But the high availability of unutilised FSRUs could curtail demand for newbuild vessels, with operators together with owners instead seeking to modify existing LNG carriers for use as offshore import terminals, such as Singapore shipbuilder Sembcorp's conversion of two carriers into FSRUs.
And demand for floating liquefaction units is expected to rise with demand for other floating production, storage and offloading units used for crude oil production.
SHI also expects demand for newbuild LNG carriers to hold strong, the firm said today, despite a number of owners expressing concerns in recent months of a market oversupply for 2021-23, including Flex LNG, Gaslog, Golar and Teekay LNG Partners. The shipbuilder may be eyeing orders from firms winning term charters from Qatar's expansion of the Ras Laffan export facility, with an estimated order ranging from 60-100 vessels.
SHI could also receive orders for 10 Arc7 ice-class carriers from the planned Novatek-led 19.8mn t/yr Arctic LNG 2 project, as well as from a number of other projects that have recently reached final investment decisions, such as Total's 12.88mn t/yr Mozambique LNG.
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LNG Energy eyes sanctions-hit Venezuela oil blocks
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US economic growth slows to 1.6pc in 1Q
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India’s Gail to shut Dabhol LNG terminal for monsoon
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