Gunvor charters Exmar FSRU for third Bangladesh LNG import project

Gunvor has agreed a 10-year charter for Exmar’s 25,000 m³ barge-based floating storage and regasification unit (FSRU), for use in what will be the third Bangladesh LNG import project to start up in the space of a year. 

The Exmar FSRU, a non-propelled vessel, is currently at the Keppel Shipyard in Singapore undergoing site-specific modification work prior to positioning in Q4 2018.

As indicated in an LNG World Shipping news story posted on 22 February 2018, Petrobangla, the Bangladeshi state oil and gas company, had earlier signed a memorandum of understanding with the Gunvor/Exmar partnership covering the provision of an LNG reception facility. 

The deal called for a regas vessel to be positioned at the jetty of the Karnaphuli Fertilizer Company on the Karnaphuli River, just downstream from Chittagong near the entrance to the Bay of Bengal. The FSRU will need to regasify up to 1.5 mta of LNG under the terms of the contract and the Geneva-based trading company Gunvor will procure the required volumes of LNG in the international market.

The shallow draft of the Exmar FSRU barge was instrumental in securing the contract due to the restricted water depths in the vicinity of the Karnaphuli jetty. Petrobangla had also considered involving another international trader, Trafigura, to provide a similar FSRU to serve a second, nearby fertiliser facility, but this project has now fallen through.

Exmar’s FSRU is the world’s first purpose-built regasification barge and the first LNG vessel fitted with cargo tanks built to IHI’s self-supporting, prismatic-shape, IMO Type B (IHI-SPB) design to be delivered in 25 years. Exmar ordered the regas barge at Wison on a speculative basis in February 2014.

The vessel’s two 12,500 m³ aluminium IHI-SPB tanks were constructed at IHI’s Aichi yard in Japan and barged to Wison for installation. Wison assisted with the development of the barge’s LNG-handling arrangements, including the transfer systems. 
 
Black & Veatch designed the FSRU’s topside units, including the boil-off gas-handling, LNG vaporisation and natural gas metering equipment. The engineering firm also procured all ancillary topside equipment and instrumentation and provided support during the construction phase. 

The other two firm Bangladesh LNG import projects are also using FSRUs. FSRU developments have continued apace over the first four months of 2018. In recent weeks Excelerate Energy has put the 138,000 m m³ FSRU Excellence on station in coastal waters off Moheshkhali Island in the Bay of Bengal, in the process welcoming Bangladesh to the LNG importers club as its 41st member.

The second Bangladesh LNG import project is due to start up in October 2018. Summit LNG will lead the scheme, which is also based on using an Excelerate Energy FSRU moored in the Bay of Bengal. Like Excellence, the Summit FSRU will have the capacity to regasify up to 3.7 mta of LNG.

Beyond the three projects outlined, Petrobangla is engaged in negotiations with other potential LNG import project developers, covering both FSRU and shore-based terminals.