FSRU market sees period of positive flux ahead

FSRU market sees period of positive flux ahead

Sep. 16 2019 - 4 min

In an evolving FSRU market, Bureau Veritas offers market-leading FSRU classification services and keen insight into LNG to Power.

As demand for liquid natural gas (LNG) intensifies around the globe, Floating Storage and Regasification Units (FSRUs) continue to play a vital role in the LNG chain. FSRUs have proven a popular market solution thanks to their flexibility, lower CAPEX costs and more efficient designs than alternative options.

One particular area stands out as key to FSRUs’ continued success: LNG to Power. There are two primary solutions for taking advantage of LNG to Power. The first involves fitting FSRUs with a Power Generation module that directly regasifies LNG, generating energy and exporting it to the local grid. The second solution combines the use of FSRUs with power plants, which can be located onshore or floating barges moored near the FSRU.

Top of the class

Bureau Veritas has been a market leader in FSRU classification for 18 years, and is currently classing 15 FSRUs worldwide. Bureau Veritas class notations and guidelines help owners achieve flexibility in the design and purposing of their FSRUs. Whatever the circumstances of a particular unit, Bureau Veritas can adapt its classification services to meet customer needs, addressing everything from environment-specific limitations to optimized hull designs.

Recently, Bureau Veritas has developed class notations to cover the power generation capacity of Floating Power barges, an additional module for FSRUs. POWERGEN focuses on the power generating module itself, while POWER PROD regulates the interface between the power generating module and the hull. Project contracts for both of these notations are underway for 2020.

In addition to developing notations, Bureau Veritas is currently classing the first FSRU to be used for an LNG-to-floating power project in Mozambique, which will begin production in early 2020. This FSRU will supply a powership, a move which could have long-term implications for the LNG market.

Bureau Veritas is also working on innovative LNG projects throughout Asia and Africa. Notable projects include a small-scale regasification barge for Ghana that is being built in China, and the JAWA-1, an FSRU being developed for Indonesia.