Shipowner BW LNG looks poised to win the job to build the first floating storage and regasification unit for Poland.
Sources following the FSRU tender launched by Polish gas transmission company Gaz-System said there appears to be just one company left in the process, naming BW LNG as the sole survivor. But several stressed that no contracts have been signed.
In October, TradeWinds revealed that BW LNG and Japan’s Mitsui OSK Lines were the final two bidders in the race.
Under its original schedule, Gaz-System outlined that it was planning to ink a charter deal with its selected provider at the end of December.
The Polish entity is now understood to have specified that it wants to deploy an FSRU newbuilding for the business. MOL is said to have lined up a slot at HD Hyundai Heavy Industries.
A 15-year contract on the FSRU is believed to be under discussion for a vessel that would deliver in late 2027 for start-up early the following year.
Asked about this business, a spokeswoman for BW LNG said: “At this time, we do not have comments on this commercial matter.”
Gaz-System’s official spokeswoman has yet to respond to any questions from TradeWinds.
If confirmed, the Polish job would add a sixth FSRU to BW LNG’s fleet.
Rising newbuilding prices
The company has built up a fleet of five FSRUs through newbuildings and LNG carrier conversions with units employed in Egypt, Brazil, Pakistan and El Salvador and a soon-to-start project in the Philippines.
In the past, BW LNG has turned to what was then Daewoo Shipbuilding & Marine Engineering for its LNG tonnage. But DSME was taken over by South Korean conglomerate Hanwha Group in May and the new owners of what is now Hanwha Ocean have been soft-pedalling on taking fresh orders as they restructure the shipbuilder.
The bulk of FSRUs under construction are conversions with about five LNG carriers undergoing work, including those for projects in Greece, Cyprus and Brazil.
In October 2022, Excelerate Energy finally placed an FSRU order, booking a lone 170,000-cbm unit at HHI in October 2022 priced at about $337m.
But prices for LNG tonnage and FSRUs have risen since so it would be expected to be above this.
Poland has been talking about installing an FSRU for at least eight years.
In October, Gaz-System said in a statement that its FSRU terminal in the Gulf of Gdansk is currently the company’s “most important project”.
‘Ever-growing needs’
Gaz-System said the floating regas-based terminal will help with security and diversity of supply for Poland, along with the expansion of the country’s President Lech Kaczynski LNG Terminal in Swinoujscie and the construction of Baltic Pipe and gas interconnectors with Lithuania and Slovakia.
“[The] FSRU is yet another project that will accelerate the transition from carbon-intensive energy sources in the face of the country’s ever-growing energy needs,” it said.
In August, Polish energy company Orlen signed up to take the entire 6.1bn cbm of the regasification capacity at the planned FSRU.
In June, offers were requested on a Phase 2 expansion that could involve the installation of a second FSRU if there is sufficient interest from domestic and regional buyers.
