Head of the floating LNG giant Höegh LNG sees floating storage and regasification units (FSRUs) as a back-up for renewables.
“FSRUs used for LNG-to-power as an addition and a back-up for renewables for me is going to be a big story and we see that happening already,” Sveinung Støhle, the president and CEO of Höegh LNG told the delegates on Monday during the Flame conference in Amsterdam.
Støhle noted that the company, as well as other players in the FSRU market, have been able to disrupt the classical way of importing LNG using land-based facilities, with 23 units in operation globally.
The reason for the growth of the market is not only the lower cost but also the ability to develop the project and have it up and running in a shorter term compared to a land-based equivalent. This has prompted prospective importers to first consider FSRUs as the option before considering a land-based facility.
With the market developing rapidly, and new volumes coming online from the United States, Australia and Qatar’s imminent capacity expansion, the eyes are set on the Asian market to absorb the volumes.
Støhle said that a game changer in the market is the rapid growth of renewable energy, with FSRUs used in LNG-to-power projects as an addition or back-up for renewables will be an important growth story that is already happening.
He added that ignoring the role of FSRUs as back-up for the renewable power generation would be a mistake.
Støhle added that the operating FSRU fleet handled 32 million tons during last year, more than the annual consumption of South Korea, noting the trend will only continue.
Höegh LNG currently has eight FSRUs on the water with seven in operation and its latest delivery the FSRU Höegh Esperanza could be deployed on a combined FSRU and LNGC contract with seasonal use in FSRU mode until the anticipated start date of its contract in Chile for the Penco-Lirquén LNG import terminal.
The company has two FSRUs under construction at the two South Korean shipyards, the Hyundai Heavy Industries and the Samsung Heavy Industries, with deliveries scheduled for December 2018 and May 2019, respectively, it said in its annual report earlier this year.
LNG World News Staff