DSME to upgrade Teekay's LNG newbuild vessel into floating storage unit

By Vessels

South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering (DSME) informed on Wednesday that Teekay upgraded one of its earlier orders for an LNG carrier to a floating storage unit (FSU).

DSME to upgrade Teekay's LNG newbuild vessel into floating storage unit

Teekay LNG Tanker - Image: Teekay

No financial details of the upgrade have been revealed by either company, however, DSME revealed in its statement, the order for the LNG carrier to be converted into the FSU has been placed in February last year. That order was priced at about US$220 million. One of the world’s largest owners of LNG carriers will charter the FSU for a liquefied natural gas terminal project being developed in Bahrain on a 20-year deal.

A consortium comprising Teekay LNG, Samsung C&T and Gulf Investment Corporation signed a contract with the government of Bahrain in December last year to build an LNG receiving and regasification terminal with a production capacity of 800 million cubic feet of gas per day.

It will be owned and operated through a joint venture, the Bahrain LNG, formed by Nogaholding and Teekay with a 30 percent stake and Samsung and GIC with a 20 percent stake each.

Besides the FSU, the project will comprise an offshore LNG receiving jetty and breakwater, an adjacent regasification platform, subsea gas pipelines from the platform to shore, an onshore gas receiving facility, and an onshore nitrogen production facility.

The project will be owned and operated under a twenty-year agreement commencing on July 15, 2018.

Source: LNG World News