On August 11, HD Hyundai Marine Solutions, a subsidiary of HD Hyundai Group, announced that it has been awarded a $30 million contract for the conversion of a LNG-FSU.
Under the contract, HD Hyundai Marine Solutions is responsible for converting the 138,000 cbm liquefied natural gas (LNG) carrier built in 2004 into an LNG-FSU, which is expected to be installed in Central America in the first half of 2025, at which time it will supply LNG to nearby thermal power plants.
In recent years, the market demand for conversion of LNG carriers to floating storage facilities has been increasing. The reason is that the cycle for building a new floating storage facility is three to four years, whereas retrofitting an existing LNG carrier takes only six months to one year.
According to HD Hyundai Marine Solution, “The market is growing due to the increasing demand for LNG as a substitute for coal due to carbon emission regulations and ‘retrofit projects’ in Europe (the Russian-Ukrainian conflict has made it difficult to transport LNG overland) .”
HD Hyundai Marine Solutions is said to specialize in marine aftermarket services and environmentally friendly retrofits, and to enhance its profitability by securing contracts for the full construction process, including design, procurement, manufacturing, transportation, installation and commissioning.