When deploying an FSRU, there are certain considerations to note – such as a detailed evaluation of its environmental impact to the area in which it is deployed in, with considerations of the additional CO2 and heat emissions generated during the LNG regasification process.
Similarly, designing the conversion of a vessel to operate as an FSRU, primary concerns include the financial and environmental efficiency of the technologies being introduced.
What are the main differences in issues involved when giving a carrier a new lease of life as an FSRU vs a newbuild?
There are several differences - when retrofitting a LNG carrier into an FSRU (Floating Storage and Regasification Unit) versus going for a new FSRU NB. The key differences include:
- Vessel conversion: When retrofitting a LNG carrier into an FSRU, the existing vessel must be modified to accommodate the regasification equipment and other necessary infrastructure. This is a complex and expensive process, requiring significant engineering expertise.
- Age and condition of the vessel: When converting an existing vessel into an FSRU, the age of the vessel must be considered. Fatigue utilization of the Vessel, condition of the LNG Tanks, LNG containment system, BOG (Boil off gas) rate, etc will be very key factors that will have to be taken into account when acquiring an older LNG carrier. Older vessels may require more extensive modifications and upgrades to meet safety and environmental standards, which can increase costs and extend the conversion timeline.
- Availability and cost: With the new Decarbonisation regulations kicking in this year for existing Vessels, it is likely that there may be a lot of LNG carriers available for retrofit to FSRUs. However it would be important for the asset Owner to do detailed assessment of the unit before embarking on the retrofit project. The retrofit option may take lesser time as compared to a NB, however a retrofit if not planned meticulously may result in significant cost and time overruns.
Overall, the main differences in the issues involved in retrofitting a LNG carrier to an FSRU versus building a new FSRU from scratch relate to the vessel's age, condition, and availability, as well as the scope of the modifications required and the associated costs. While vessel conversions can offer a more cost-effective and faster solution, building a new vessel may provide greater flexibility and control over the design and construction process.
What are DNV’s technologies available that will propel the FSRU sector towards reducing its carbon footprint?
We are the leading provider of Classification, technical assurance, advisory, and risk management services towards the Maritime and Energy industry. We have specially tailored rules for FSRUs and our Classification notations like ASP, UWILD, CMON, CLEAN, CCS, ABATE, RECYCLABLE all help to reduce the carbon footprint of an FSRU. These notations also help to reduce operational downtimes and increased reliability of operations.
Overall, DNV's technical assurance and services are geared towards helping FSRUs to reduce their carbon footprint, increase efficiency, and operate in a more sustainable manner.
What are the possible challenges that lie ahead in the bid for FSRUs to become more sustainable?
Some of the key challenges include:
- Cost: High capex. Having said that, an FSRU (whether NB or retrofitted LNG carrier) is far more cheaper and faster to mobilise than setting up a greenfield LNG terminal with Land based LNG storage tanks with shore based Regas plant.
- Regulation: While many countries are adopting regulations that encourage the use of cleaner energy sources, such as natural gas, there is still a lack of standardization and consistency in these regulations. This can make it difficult for FSRU operators to navigate and comply with regulations in different jurisdictions.
- Public perception: Although LNG terminals have some of the best safety records, there are apprehensions of having a LNG terminal with and FSRU to Civilian residential localities if these are going to be the final recipient of the Gas. These result in the FSRU having to be moored offshore resulting in significant increase in infrastructure CAPEX costs.
Additional CO2 and heat emissions is generated during the LNG regasification process. What sort of evaluation of its environmental impact to the area must be considered when deploying an FSRU in a new area?
A comprehensive environmental impact assessment is always conducted prior to the deployment of an FSRU in a new area and setting up an associated LNG terminal. This assessment takes into account the factors like impact of the
- Marine traffic that is going to have on the Marine and land ecosystem,
- Heated Water discharge on the local ecosystem,
- Methane slip from the Diesel engines onboard (as they generally burn Natural Gas)
- Noise pollution
- Any accidents and measures in place towards mitigating risks from a potential accident.
How is the drive to sustainability affect FSRU operators OPEX and CAPEX and has it changed over the past few years?
As with every industry, FSRU operators have also been under pressure to show their commitment towards Sustainable operations. This drive towards sustainability has resulted in FSRU operators investing in new technologies and equipment that reduce the environmental impact of their operations.
The Boiloff Gas is utilized to power the Diesel Generators which provide power for Hotel loads and running all the LNG containment and Regas system onboard the FSRU. Technology has helped to reduce the BOG to a minimum or nil in some cases. So Shore power is used to power all equipment onboard resulting in zero emissions from the Vessel and more importantly Methane slip. Operators are also increasingly open to invest carbon abatement technologies to reduce the CO2 emissions. As mentioned earlier, investing in enhanced monitoring systems have also helped to increase reliability of equipment and time between overhauls/inspections which also helps to reduce the overall carbon footprint from operations.
These investments in sustainability have resulted in increased CAPEX for FSRU operators, however several of these measures have also helped to reduce long term OPEX due to increased reliability.
DNV will give a keynote on FSRU TECHNOLOGY, DESIGN AND SUSTAINABILITY and join the panel to discuss TOWARDS NET-ZERO AND SUSTAINABLE FSRUs.
