Korean shipbuilders eye FSRU conversions as aging LNG carriers spur demand

A project to convert aging liquefied natural gas (LNG) carriers into floating storage and regasification units (FSRUs) is drawing attention as a new market in the shipbuilding industry. An FSRU is an offshore LNG terminal that stores LNG on a vessel and then converts it back to gas for onshore supply.

According to the shipbuilding industry on the 22nd, HD Hyndai Marine Solution completed the main design of the FSRU conversion project it first won in September last year and is now carrying out follow-up work. HD Hyndai Marine Solution took on the overall ship conversion work needed to turn an LNG carrier into an FSRU.

Within Hanwha Group, Hanwha Power is ramping up its FSRU conversion business. Hanwha Power began the FSRU conversion business in 2023. Hanwha Power is carrying out a project to convert a 145,000 ㎥-class LNG carrier into an FSRU. The work is now in its final stage and is expected to be completed within the year.

The FSRU conversion business is gaining momentum because of the short manufacturing timeline. According to the International Gas Union (IGU), an FSRU has a shorter construction period than an onshore LNG terminal and a smaller initial investment burden.

This story was originally published by Hellenic Shipping News. Read the full story at Hellenic Shipping News →