On October 14, HD Hyundai Heavy Industries held a steel cutting ceremony for the floating storage and regasification unit (FSRU) built by Excelerate Energy, a US listed company.
The FSRU was ordered by Excelerate Energy to Hyundai Heavy Industries (not yet renamed HD Hyundai Heavy Industries) in October 2022, with a contract value of US$335 million. The FSRU is scheduled to be delivered in 2026, but construction wouldn’t start until two years after the order is placed. It is reported that the keel of the FSRU will be installed in March next year and the construction speed will be accelerated.
This type of FSRU is equipped with an LNG regasification system, a dual-fuel engine, a selective catalytic reduction system, and advanced boil-off gas management technology to improve energy efficiency and reduce emissions.
FSRU is a facility that stores LNG and regasifies it for delivery to land. Due to the geopolitical crisis, Europe reduces its dependence on Russian oil and imports LNG from other regions after the Russian-Ukrainian war, which has led to rising FSRU costs and increasing demand for FSRU.
Xcelerate Energy owns 20% of the world’s FSRUs. The company announced last year that due to strong demand, it is expected to purchase another FSRU to increase fleet flexibility and prepare for the global supply chain ecosystem.
According to Clarksons data, HD Hyundai Heavy Industries is the “leader” in the FSRU new construction market. Of the 41 FSRUs currently in operation worldwide, 13 were built by HD Hyundai Heavy Industries, accounting for more than 30% of the market.