Project-hungry Dreifa Energy has costed out its plan to convert a platform supply vessel to floating regasification unit (FRU) alongside other alternatives.
In a side meeting at Gastech in Barcelona, Dreifa co-founder Jostein Ueland told TradeWinds that for a 500,000 tonne per annum market, the unit cost of using the PSV-FRU conversion model, which would be supplied in combination with a separate floating storage unit (FSU), would be slightly more than $1 per million British thermal units (MMBtu).
Ueland compared this to supplying an FSRU newbuilding for the same market, which he said would come in at $2 to $2.50 per MMBtu. An LNG carrier-to-FSRU conversion would stack up at around $1.50 per MMBtu.
Ueland said FSRUs have been growing in size but he added that once developers start looking at smaller units the capital expenditure can prove too expensive for the project. “We are trying to solve the capex for a slightly lower demand,” he said.
He said Dreifa, which first came out with its concept almost two years ago, has acquired the PSV Blue Berita, completed all engineering work and secured approval in principle from class.
Ueland said Dreifa has debated buying an FSU but said units remain priced at levels in the $40m range for modern steamships and $20m or less for older vessels. He added that prices are “not going anywhere” so the company sees no need to rush.
He said Dreifa is currently “pushing massive amounts of projects around the world”, with the company “aggressively working” on 10 to 12 of them.
Ueland highlighted projects such as Cyprus, which is expected to emerge with a requirement for a small FSRU, as ones that would likely suit this concept. However, he accepted that competition would likely be strong for this business.
The company's founding partner, who also kicked off Flex LNG in 2007, said Dreifa’s sweetspot for time-charter periods is five years. It would likely take a two to three-year firm deal with options.
Ueland said Dreifa can put its solution into play in 14 months, which includes the yard time for the conversion and any mobilisation.
The company has yet to sign any agreements with shipyards but Ueland said it has narrowed yard contenders down to a single-digit group. “ We don’t want to make the final push until we are ready to do it,” he said.
