Owners investing in growing sectors
One sector in which Norwegian owners are investing is gas shipping, including floating storage and regasification unit (FSRU) projects.
Höegh LNG is involved in a number of global FSRU projects, such as the Octopus LNG project in Chile, for which it has ordered a dedicated FSRU that is due to be delivered in 2018. It is also involved in other new projects including in Ghana and Pakistan. In late 2016 FSRU Höegh Grace, built in 2015, took up its position at the Colombian port of Cartagena to start a 20-year contract to handle liquefied natural gas (LNG) imports.
In total Höegh LNG has a fleet of 10 FSRUs in service or on order. The latest two 174,500m3 units were ordered in January 2017 at Samsung Heavy Industries and Hyundai Heavy Industries in South Korea, to be delivered in 2019. It also has options for a further three units at Samsung.
In March 2017 Höegh LNG president and chief executive Sveinung Støhle said that the company is also looking at FSRU opportunities in Australia.
Höegh LNG has recently implemented a restructuring specifically to focus on the FSRU market. It has formed a new operations division that is responsible for the technical and commercial management of all Höegh assets, including its FSRUs.
Mr Støhle said: “We have been very successful in growing our FSRU business, with six FSRUs and two LNG carriers in operation, and we have another three FSRU projects coming on stream in the next 18 months, in Ghana, Pakistan and Chile. Höegh LNG is the leading company in the FSRU segment and we have a clear objective to strengthen our position in this market.”
Golar LNG’s floating LNG (FLNG) conversion of the LNG carrier Hilli at Keppel Shipyard in Singapore is due to be completed in May 2017, and will be renamed Golar Episeyo for its deployment in Cameroon in September. This project will be followed by the conversion of sister ship Gandria into an FLNG at the same yard. Another Golar LNG carrier Gimi is also expected to be converted.
IM Skaugen is continuing its investment strategy in small-scale LNG carriers. In January 2017 it signed long-term contracts for the time charter of three multi-gas (MG) vessels. The time charter contracts are for one 12,000m3 and two 10,000m3 MG vessels currently operated by Skaugen.
The company will provide shuttle and feeder services, floating storage support, storage and offloading of LNG with a client for two existing gas fired power plants in Africa. Skaugen has been asked to carry out the complete project management of this virtual pipeline, encompassing the entire supply chain from the sourcing of LNG supply to the delivery of gas to the power plants. Start-up of the contract was planned for in late March or early April 2017.
Skaugen’s chief financial officer Bente Flø told Norwegian Solutions’ sister publication LNG World Shipping that the vessels will switch from the Nordic liquefied petroleum gas (LPG) trades and will take position off Africa this spring.
Another Norwegian-owned group that is active in the gas sector is Singapore-based BW Group. In January 2017 it took delivery of newbuild FSRU BW Integrity, which is being deployed in Pakistan. This is BW’s second FSRU following BW Singapore. It has contracted with Daewoo Shipbuilding & Marine Engineering (DSME) to convert a third FSRU, due to be delivered in 2019.
BW Group company BW LPG has consolidated its ranking as the leading owner of very large gas carriers (VLGCs). Its acquisition of Aurora LPG increased its fleet to 49 LPG carriers with Aurora’s nine LPG carriers being added. As a result, Aurora LPG was delisted from the Oslo Axess market.
However, BW decided to exit the VLCC tanker market, selling its 11 VLCCs, including two newbuildings due for delivery in 2018, to DHT Holdings, which had earlier resisted a bid from John Fredriksen’s Frontline. The deal includes BW Group taking a 33 per cent stake in DHT Holdings.
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