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HD Hyundai Marine Solution Secures First Order for LNG Floating Storage Unit

2024.08.11

A 170,000m³ LNG-FSRU constructed by HD Hyundai Heavy Industries and delivered in 2020

▶ Concluded the first-ever $30 million contract to retrofit an LNG-FSU for a European shipping company since the company’s establishment
▶ Converting a 2004-built LNG carrier into an offshore LNG terminal that is scheduled for delivery in the first half of 2025
▶ Recognized as a key alternative for LNG imports through maritime routes, particularly in European countries due to its feasibility of installation and operation within a year
▶ Expecting large-scale orders in the second half of the year through the expansion of the eco-friendly gas solutions retrofit portfolio

Seoul, South Korea – August 11, 2024 - HD Hyundai Marine Solution, a comprehensive marine solutions provider under HD Hyundai, has secured its first retrofit project for an LNG Floating Storate Unit(LNG-FSU) since its establishment in 2016.

On August 11, HD Hyundai Marine Solution announced that it has signed a $30 million retrofit contract for an LNG-FSU with a European shipping company.

Under this contract, HD Hyundai Marine Solution will retrofit a 138,000m³ LNG carrier, built in Spain in 2004, into an LNG-FSU. The project will use a turnkey approach, with HD Hyundai Marine Solution managing the entire process, including design, procurement, manufacturing, transportation, installation, and commissioning, to maximize profitability.

The retrofit is planned to be completed by the first half of 2025. The converted LNG-FSU will be installed in Central America and will supply LNG to a nearby thermal power plant.

An LNG-FSU operates as a type of offshore LNG terminal that stays in a specific location at sea for extended periods, receiving and storing LNG periodically, and delivering it to onshore power plants and storage facilities as needed. This retrofit business is advantageous as it recycles aging LNG carriers and offers an economical and eco-friendly solution by being relocatable according to demand.

Additionally, unlike traditional onshore and offshore LNG plants that typically take over 3-4 years to build, LNG-FSU retrofits can be installed and operational within as little as one year. This makes them an attractive alternative for LNG imports via sea, particularly in Europe following the Russia-Ukraine conflict.

“The LNG-FSU retrofit project is one of the most challenging projects due to the lack of standardized designs and the high level of technical expertise required,” said an official of HD Hyundai Marine Solution. “Based on our accumulated experience and capabilities from various retrofit projects, we plan to expand our market share in the eco-friendly vessel retrofit sector.”

Meanwhile, HD Hyundai Marine Solution plans to use this LNG-FSU retrofit contract as a stepping stone to secure large-scale orders in the second half of the year in the field of eco-friendly gas solutions retrofit, such as retrofitting LNG Floating Storage Re-gasification Unit (LNG-FSRU) and dual-fuel engines for LNG, LPG, and methanol.

#HD Hyundai Marine Solution #Shipbuilding

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