Upstream investment in floating production systems (FPS) and well tie-backs will drive demand for subsea construction and maintenance support vessels this decade
There may be enough vessels in the market in 2023, but availability and higher rates will become key challenges for energy companies and beneficial for vessel owners.
More than 300 subsea trees are set to be installed in the next three years, resulting in high demand for subsea support vessels, delegates discovered at Riviera Maritime Media’s Offshore Support Journal Conference, Exhibition & Awards 2023, held 8-9 February in London, UK.
Maritime Strategies International offshore energy market analyst, Joshua Belo-Osagie said FPS projects in Latin America and West Africa, and maintenance work in the North Sea and Asia are driving market demand.
“There will be an elevated period of subsea activity based on installations,” he said. “We are bullish on the deepwater market where there are more complex workscopes.”
This upcoming demand hike comes as available subsea vessel supply has diminished.
“It is a tightening subsea market with shrinkage in the laid-up fleet and almost no newbuild deliveries since 2020,” said Mr Belo-Osagie.
Utilisation of the global fleet of 330 subsea support vessels was around 85% at the start of 2023. With no more vessels expected in the market, he questioned whether there are sufficient vessels available to meet the forecast demand growth.
Also in this session, Salt Ship Design director for project developments Johannes Eldøy explained the potential opportunities for vessel owners from growing pressure on energy markets to cut emissions. He described the availability and suitability of alternative fuels for OSVs, including LNG, LPG, methanol, ammonia and liquified organic hydrogen carriers.
“Advances in technology and fuels could bring new options,” said Mr Eldøy. “But they will need piloting and maturing and need shipowners to be early movers.” It will also need charterers to support owners to mitigate risks.
Bakker Sliedrecht client solution manager Remco Ammerlaan explained the importance of integrating hybrid systems in existing DP vessels. He spoke about the functionalities that can be realised with a hybrid system and the considerations for hybridising existing vessels. Mr Ammerlaan described the process of engineering and integrating a classified hybrid system on existing DP vessels and explained how to implement the system on board from installation to crew familiarisation.
ABS director of fuels and technology René Sejer Laursen presented a new joint industry project which is installing subsea tanks for ammonia ship bunkering. This project, involving Equinor and NOV, includes subsea flowlines linking these specialised tanks on the seabed to a steel platform dedicated to supplying ammonia to ships.
This is being developed and tested over the next few years and an ABS approval in principle could be awarded in mid-2023.
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