Malaysia: MHB Wins FSU Lekas Contract

Malaysia Marine and Heavy Engineering Holdings Berhad (MHB) announced that it has been awarded by MISC Berhad a conversion contract for the SS Tenaga Satu LNG Carrier.

The contract is for the repair, life extension and conversion of MISC Berhad’s SS Tenaga Satu into a Floating Storage Unit (FSU) facility, to be known as FSU Lekas. Upon completion, FSU Lekas would be moored at Malaysia’s very first Regasification Terminal at Sungai Udang, Melaka.

This is the first conversion into a FSU by a Malaysia-based company and also amongst the first few in the world. As the demand for a cleaner source of energy grows, LNG carriers will play a pivotal role in meeting future’s energy demand. A regasification terminal or facility would be required when importing LNG and FSUs can be a cost effective solution in such a facility.

The repair and conversion of LNG vessel into a FSU facility marked a successful extension of MHB’s scope of services and capabilities as the Group currently also provide repair and drydocking facilities to LNG and Liquefied Petroleum Gas (LPG) vessels. In the recent financial year ended 31 March 2011, 16% of the vessels repaired by MHB are high-value LNG/LPG vessels.

Source: MHB, August 17, 2011;