On October 14, HD Hyundai Heavy Industries held a steel cutting ceremony for floating storage regasification unit (FSRU) built for the US listed company Excelerate Energy.
The FSRU was ordered by Excelerate Energy in October 2022 to Hyundai Heavy Industries (when it had not been renamed HD Hyundai Heavy Industries), the contract was worth $ 335 million. The FSRU is planned to be delivered in 2026, but it wouldn’t be built for two years after ordered.
It is reported that the FSRU will be keel laid in March next year and speed up its construction. This FSRU is equipped with an LNG Regasification system, dual -fuel engine, selective catalytic reduction system, and advanced evaporation gas management technology to improve energy efficiency and reduce emissions.
FSRU is a facility that stores LNG and then transports to the land. Due to geopolitical crises, Europe sought to reduce its dependence on Russia’s oil and import LNG from other regions after the Russia and Ukraine War, which led to the continuous increase in FSRU costs and the increase in demand for FSRU.
Xcelerate Energy owns 20%of the world’s FSRU. The company announced last year that due to its strong demand, it is expected to buy another FSRU to increase fleet flexibility and prepare for the global supply chain ecosystem.
The FSRU new market is still “monopolized” by South Korean shipbuilding companies.
In March of this year, HD Hyundai Heavy Industries received a 170,000 cubic meter FSRU order from the Japan’s MOL, worth $ 364 million. The FSRU is 294 meters long and 46 meters wide. It is the first FSRU order that HD Hyundai Group has undertaken this year, which planned to be delivered before July 30, 2027.
At the beginning of this month (October), Hanhua Ocean also received a FSRU order form MOL, worth $ 410 million. It is expected to be delivered in October 2027. After delivery, it will serve Singapore’s long -term LNG business.
According to Clarkson data, HD Hyundai Heavy Industries is the “leader” of the FSRU new market. At present, 13 FSRUs operated worldwide are built by HD Hyundai Heavy Industries, and the market accounts for more than 30%.
