FSRUs emerge as new cash cow for Korean shipbuilders - BusinessKorea
According to Clarkson Research, a British shipbuilding and shipping market analysis agency, the number of FSRUs to be operated in northern and western European waters is expected to increase to 11 with the addition of seven by the end of next year. The number of FSRUs worldwide is expected to reach 53 by the end of next year, including new and remodeled units, according to BusinessKorea.
FSRUs are called “floating LNG terminals” as they can vaporize liquefied natural gas (LNG) at sea and directly supply it to land. In order to reduce the volume of natural gas, an FSRU liquefies natural gas and stores it and, if necessary, re-gasifies it for supply to onshore consumers through piping.
The Russia-Ukraine conflict has halted the gas pipeline Nordstream 2 project for Germany, so European countries are using LNG as an alternative. About 12 percent of global LNG imports are supplied through FSRUs, according to Clarkson Research.
Korean shipbuilders are regarded as the world’s best in building FSRUs. Korean shipyards accounted for 33 of the entire 35 FSRUs built around the world in 2021.
Recently, Korea Shipbuilding & Offshore Engineering (KSOE) signed a contract with Accelerate Energy to build a 170,000-cubic-meter LNG-FSRU worth 475.7 billion won. It was the world’s first FSRU order in 2022. KSOE will deliver the FSRU to the client by 2026.
