GDF Suez and Hoegh to issue FSRU tender

European energy giant GDF Suez and Hoegh LNG are expected to issue a tender shortly for a purpose-built LNG floating storage and regasification unit (FSRU) for their Triton project of Italy.

Four shipyards, Daewoo, Hyundai Heavy Industries, STX Offshore & Shipbuilding and Samsung, have been prequalified for the job of building the 170,000m3 unit which would be stationed in the Adriatic about 30 kilometres (18.6 miles) off the Marche region shore.

The price of the job will depend on the specifications detailed in the tender but indications are that it could be around $300m or slightly less. The partners need to opt for a newbuilding since there are no existing vessels of this size. Informed sources describe the planned unit as something of a hybrid between a regasification vessel and an FSRU in that it is likely to have a higher gas send-out rate than a regas ship but offer greater propulsion speeds than an FSRU.

Shipbuilders were originally expecting to receive the tender for the job last month but this slipped back to mid-June, with the latest indications being that it will be issued this month. The business, which would represent the first LNG FSRU newbuilding, would provide welcome work for yards that have been starved of orders since the downturn.

After yards submit their proposals, two are expected to be shortlisted before a final selection is made. The project is currently scheduled to be sanctioned early next year with the FSRU due to be operational by 2013.

Gaz de France (GdF) and Hoegh signed a joint-development agreement to design, build and operate an FSRU for the Triton LNG project in May 2008. When they first detailed the project, the partners specified a base-load regasification capacity of five billion cbm, which could be doubled with the addition of a second FSRU.

Under this plan, GDF Suez would own the unit and lease it to its joint-venture partnership with Hoegh. The Norwegian company would operate the FSRU and GDF Suez would supply the LNG.

GDF Suez LNG North America and Hoegh are working together on US offshore-import project Neptune LNG, which is due to be commissioned late this year or early next year using shuttle and regasification vessels. Last year, Hoegh, which is trying to progress a number of other FSRU projects, hooked up with Italy’s Enel to develop an LNG floating production storage and offloading (FPSO) unit.