HD Hyundai Marine bags $30mn deal to convert LNGC into FSU

HD Hyundai Marine Solutions, a South Korean company, has won a $30mn contract to convert an LNG carrier (LNGC) into a floating LNG storage facility (LNG-FSU), marking the company's first order of this kind since its establishment in 2016, it said on August 8.

Under the terms of the contract, HD Hyundai Marine Solutions will retrofit a 138,000m³ LNG carrier, originally built in Spain in 2004, into an LNG-FSU. The company will oversee the entire process, including design, procurement, production, transportation, installation, and commissioning, delivering the project on a turnkey basis.

The conversion is scheduled for completion by the first half of 2025, after which the facility will be installed in Central America to supply LNG to nearby thermal power plants.

An LNG-FSU functions as an offshore LNG terminal, remaining in a fixed sea location for extended periods. It periodically receives, stores, and delivers LNG to onshore power plants and storage facilities as needed.

This conversion project is considered an economical and environmentally friendly solution due to its ability to repurpose older LNG carriers and its mobility, allowing installation in various locations based on demand. The LNG-FSU conversion process is also faster than constructing traditional onshore and offshore LNG plants, which typically take up to four years. 

Looking ahead, HD Hyundai Marine Solutions anticipates securing large-scale orders in the second half of the year, focusing on eco-friendly gas solution modifications. These include conversions of floating LNG storage and regasification units (LNG-FSRUs) and modifications of dual-fuel engines for LNG, LPG, and methanol, with the current LNG-FSU project serving as a significant stepping stone.