Energy major Shell has secured conversion business for two of its three steam-turbine driven, G-class LNG carriers, but its plans for a third 15-year-old sistership are unclear.
The 137,001-cbm Gallina and 136,967-cbm Galea (both built 2002) are reported to be committed for conversion to floating storage and regasification units for use in El Salvador and Cyprus, respectively.
But the company told brokers the Moss-type, 136,985-cbm LNG carrier Gemmata (built 2004), which was seen in the Atlantic off South America this week, is no longer for sale.
The vessel is understood to be financed with the company under a UK tax lease.
Joint venture
In September, TradeWinds reported the joint venture between power-plant developer Invenergy and BW LNG was poised to buy an LNG carrier to convert into an FSRU for the $1bn Energia del Pacifico LNG import project for El Salvador.
Shell’s Moss-type Gallina has previously been linked to this project.
Last week, it was revealed the Galea will be converted into an FSRU in China to serve Cyprus’ planned import project. It is due to be in operation early in 2022.
Shell appears to have been trying to shed its G-class trio for several years.
TradeWinds first reported the major was trying to offload the ships in 2013. At the time, brokers valued them at about $140m to $150m each, but no deal materialised.
Two years ago, it emerged that Shell was on the verge of selling two of the ships under a five-year bareboat charter-back deal with purchase obligations.
Brokers said then that it was difficult to put a price on the vessels but valued them at between $40m and $50m each, reflecting the fall in prices for older steam-turbine ships as more modern and efficient LNG newbuildings started to emerge on the market.
However, this sale appears to have fallen through.
