Hyundai shipyard wins $337 million order to build FSRU for Excelerate Energy

By Lim Chang-won Posted : October 5, 2022, 16:42 Updated : October 5, 2022, 16:42

[Courtesy of Korea Shipbuilding & Offshore Engineering]

SEOUL -- South Korea's Hyundai shipbuilding group clinched an order worth 475.7 billion won ($337 million) to build a floating storage regasification unit (FSRU), which is a special type of tanker fitted with equipment to gently warm liquefied natural gas (LNG) back into a gaseous state so it can be piped to customers on land. 

The 170,000 cubic meter FSRU vessel will be delivered to Excelerate Energy, a U.S.-based market leader in floating LNG regasification solutions, by the end of June 2026. LNG needs to be gasified before being supplied to users. A regasification system is a key element of FSRU, a ship-type facility that can supply LNG directly to consumers on land after vaporizing it at sea.

Korea Shipbuilding & Offshore Engineering (KSOE), the shipbuilding group's holding company, anticipates more orders, saying the war between Russia and Ukraine led to growing interest in FSRU. "We expect additional orders as there are a series of inquiries about LNG-FSRU due to the recent disruption of the LNG supply chain in Europe," an unnamed KSOE official said.

Russia slashed gas deliveries to Europe after the West imposed sanctions over Moscow's invasion of Ukraine. According to Clarksons Research, a market leading provider of data and intelligence, about 12 percent of global LNG imports are supplied through FSRU.
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