An LNG carrier currently owned by Shell has been selected as the preferred vessel for conversion into a floating storage and regasification unit for El Salvador’s planned import project, for which BW LNG will provide the FSRU.
TradeWinds has learned that the 137,001-cbm Gallina (built 2002), which is one of three Moss-type, G-class LNG carriers controlled by the energy major, has been selected for conversion to serve as the floating import terminal for the Acajutla LNG project.
Sources close to the project said a Moss-type ship was preferred, as the location for the unit is exposed and the tanks on this type of ship would not be susceptible to potential sloshing problems from rough waters or partial-filling levels.
They added that BW had originally selected one of its own ships to convert for the project but developers later insisted on a Moss vessel.
In August, BW confirmed that it would put its 159,274-cbm LNG carrier BW GDF Suez Paris (built 2009) into Singapore’s Keppel Shipyard for conversion into an FSRU, after the yard announced work on the vessel.
At the time, BW, which has been upping its FSRU game with two units in service as regas vessels and a third delivering next year signed to a Brazilian project, did not give details of how the converted vessel would be deployed.
Shell does not speak on commercial shipping matters, while BW declined to comment.
Acajutla LNG is being developed for local utility Energia del Pacifico (EDP) to supply gas to a 380MW power plant in the port of Acajutla on the west coast of the Central American nation.
Shell is supplying LNG to the terminal and BW is understood to have been selected as the company to supply and operate the FSRU.
But the project partners have still to take a final investment decision. Insiders indicate this is timetabled for April next year.
EDP, which has been pursuing this project for several years, then needs to build its planned power station.
Under current plans, the new LNG-import project is due to start up in May 2021.
If this schedule is maintained, the Gallina would go into a yard for its conversion into an FSRU in early 2020. This would allow the ship to be delivered by the end of that year and be on site shortly after that to facilitate the commissioning of the new receiving terminal.
Shell has been trying for some time to sell off its G-class series of LNG carriers, comprising the Gallina, the 136,967-cbm Galea (built 2002) and 136,985-cbm Gemmata (built 2004). Last year, TradeWinds reported that the company was close to finalising the sale of the Gallina and Galea. But this does not appear to have materialised.
At the time, market players said the Shell-owned and managed pair would make good conversion candidates for LNG storage projects.
