HD Hyundai wins LNG conversion contract
Hyundai has won a USD 30 million contract to convert a 2004-built LNG into a FSU (Source: HD Hyundai)
South Korea’s HD Hyundai Marine Solution has won a USD 30 million contract for the conversion of a 138,000m3 LNG carrier to a floating storage unit (FSU), due for completion during the first half of 2025. Once converted, the vessel will operate off Central America.
“The LNG-FSU conversion project is one of the most difficult projects as it does not have a standardised design and requires a high level of technology and knowhow,” said an HD Hyundai Marine Solution spokesperson. “We plan to expand our market share in eco-friendly ship conversion based on the experience and capabilities accumulated through various retrofit projects.”
A challenge of FSU operation is the requirement to remain in a part-loaded condition for long periods, leading to concerns over stability and sloshing. In addition, constant offloading and loading requires more robust onboard infrastructure; remaining on-station for far longer periods requires more robust mooring systems; and, this operating profile inhibits drydocking.
Nevertheless, HD Hyundai expects greater uptake for LNG FSU and FSRU conversions in the coming years, thanks to uncertainty over gas supply following the escalating Russia-Ukraine war – and recent incursion of Ukrainian troops into Russia.
