Leading the charge in the emerging LNG-to-power sector is Karpowership, which has struck deals with two leading LNG shipping companies, acquired more ships, and has projects in the water and more on the way
Since they were first introduced in the mid-2000s, floating storage, regasification and storage units (FSRUs) have become increasingly popular for their flexibility. They can trade as regular LNG carriers, or be deployed initially or on a long-term basis as part of LNG import terminals.
A more recent use of FSRUs is in combination with floating power plants in LNG-to-power applications. LNG-to-power can be composed of both floating and onshore assets in five configurations, according to a paper by Mike Wyllie, managing director, OpenWater Energy Ltd and research associate, Oxford Institute for Energy Studies. Two of these configurations consist of entirely floating systems that feed power directly into the grid: one uses an FSRU that receives LNG from an LNG carrier and regasifies it into natural gas, feeding it to a floating power plant. Electricity generated onboard is than fed via high-voltage power cables to an onshore substation and directly into an onshore grid.
In the second configuration, an LNG carrier supplies LNG to a floating storage, regasification and power plant, which produces power that is fed into an onshore grid.
A third configuration employs an FSRU that feeds gas to an onshore power plant, while a fourth uses a floating storage unit (FSU) with onshore regasification to produce gas for power generation; a fifth uses onshore LNG storage and regasification.
“The partnership will offer a tailor-made solution for power-generation customers”
One of the pioneers and most ambitious owners in the emerging floating power plant sector is Turkey’s Karpowership. In 2021, it marked its first LNG-to-power project in Amurang, Indonesia, when Powership Zeynep Sultan began generating electricity for the local grid using LNG. For the project, Powership Zeynep Sultan’s dual-fuel engines were converted to operate on natural gas. The Powership is fed natural gas from an accompanying FSRU.
The LNG-to-power project is part of an agreement with PLN GG, supplying the LNG, and PT Sulawesi Regas Satu, operator and owner of 2017-built FSRU Hua Xiang 8m.
Karpowerships is the creator of the Powership concept. Powerships are barge- or ship-based power plants which convert regasified LNG or heavy fuel oil (HFO) into power. The Powerships are sailed to the location with complete high-voltage power stations, plugging into a country’s grid to provide electricity.
Using LNG allows the use of Indonesian gas resources, while reducing the carbon footprint of electricity generation.
Powership Zeynap Sultan, and four other Powerships – Nezih Bey, Onur Sultan, Gökhan Bey and Yasin Bey – have been operating in Indonesia since 2016. Powership Onur Sultan in Medan has been operating on gas since 2018.
Karpowership has been looking to expand its LNG-to-power business through recent agreements and fleet additions. Last year, the Turkish vessel owner signed a memorandum of understanding (MoU) with Qatar’s Nakilat to collaborate on LNG-to-power projects and jointly own and operate FSRUs.
Last year, Karpowership bought one of two LNG carriers sold by TotalEnergies. The Liberian-flag vessel, LNG Unity (ex-Provalys), was built in 2006 and has a capacity of 154,42 m3. LNG Unity could be a candidate for conversion to an FSRU. The registered owner is Karpowerships Americas Co Ltd, according to the Equasis database.
Marine Traffic’s AIS traffic data indicated LNG Unity was at the shiprepairer Besiktas Shipyard in Yalova, Turkey, on 11 February.
The Turkish vessel owner is betting on LNG to help developing countries with minimum infrastructure to quickly transition from coal, heavy fuel oil or diesel to meet their power-generation needs, while advancing their sustainability goals.
Privately held Karpowership’s plans call for 80% of its Powerships to be running on LNG by 2025.
Meanwhile, Nakilat owns and manages one FSRU, Excelerate Exquisite, built in 2009 by South Korea’s Daewoo Shipbuilding & Marine Engineering (DSME). Nakilat chief executive Abdullah Al-Sulaiti sees the deal as an opportunity to build on its long-term strategy “to expand and diversify our shipping portfolio and strengthen our position as a global leader in the energy transportation sector.”
“Use of FSRUs means we can unlock the benefits of clean and affordable electricity”
Karpowership chief executive Orhan Remzi Karadeniz believes the partnership will be able to offer a “tailor-made solution” for power-generation customers.
The MoU between the two lays the foundation for the creation of a new joint venture and the delivery of an FSRU by 2023.
Joint venture with MOL
Another Karpowership joint venture has deployed Africa’s first LNG-to-power project. KARMOL LNG, a 50-50 JV with Japan’s Mitsui OSK Lines (MOL), began work on a series of vessel conversions in January 2019, turning existing LNG carriers into FSRUs. The first ship, Karmol LNGT Powership Africa, was delivered by Singapore’s Sembcorp Marine in March 2021, and is now installed off the coast of Senegal. Karmol LNGT Powership Africa is connected via gas pipelines to Powership Ayşegül Sultan, has a capacity of 235 MW and has been in operation since October 2019, supplying 15% of Senegal’s electricity with 220 MW of power to Senegal’s grid.
KARMOL board member Gokhan Kocak says: “We have a bold ambition to offer LNG-to-power across the world and especially in Africa. Usage of FSRUs means we can unlock the benefits of clean and affordable electricity for millions of people, even where countries have no domestic production or infrastructure.”
KARMOL’s second vessel, Karmol LNGT Powership Asia, was delivered in Q3 2021 for operation in Mozambique.
Bureau Veritas supported the conversion work on the FSRUs. Equipment installed included regasification and power-generation modules, mooring systems and LNG ship-to-ship transfer systems.
Karpowership was selected by South Africa’s energy ministry as a preferred bidder to provide LNG-to-power across three sites, totaling 1,220 MW. An unsuccessful rival bidder for the emergency power contract, DNG Energy, had objected to the award of the contract to Karpowership, but its legal challenges was dismissed by a high court in January.
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