Spanish energy company Naturgy, formerly Gas Natural Fenosa, is looking at building a small-scale floating storage and regasification unit for a project that it is targeting in the Caribbean.
Industry sources have told TradeWinds that the company, which was rebranded last month under a strategic overhaul, is looking at an FSRU of around 30,000-cbm capacity.
One source indicated that the unit would be for deployment in Jamaica for a project being put together by Petrojam. But further details have still to emerge.
Naturgy has been pushing to make a play in the FSRU sector for some time. The company has already chartered in a regas unit, the Hoegh Giant (built 2017), for three years. But, at present, the vessel is being used purely for trading.
Naturgy has hinted that it hopes to have a contract in place this year that would see its small-scale LNG distribution, DirectLink, put into commercial operation by 2020.
This uses a system developed by partner Connect LNG to unload small parcels of LNG from a vessel using a combined mooring, platform, floating hose and transfer lines, delivering volumes to a regasification site.
Company officials said previously that they had been speaking to power providers in the Caribbean that want to switch to using gas.
Under its concept, Naturgy cargoes being exported from the US would make a short diversion to the Caribbean where small parcels of LNG could be offloaded.
But Naturgy’s LNG business is currently under scrutiny as the company mirrors Engie’s moves in France and shifts towards growing its renewables business.
New chairman and chief executive Francisco Reynes has been asked by Naturgy’s shareholders — CriteriaCaixa, Global Infrastructure Partners and private equity group CVC Capital Partners — to look at the sale of the LNG business amid media speculation that it could be valued at €5bn.
