LNG World Shipping: FSRUs Open LNG to New Importers

17 May 2016: “Building land-based import terminals can be expensive and time-consuming, and can run into regulatory obstacles. So, for many prospective LNG buyers, floating storage and regasification units (FSRUs) present a cheap, quick and straightforward alternative, at around US$300 million to build, or as little as US$80 million to convert, according to broker Poten & Partners. “…Other reports have linked China National Offshore Oil Corp (CNOOC) and other shipping and energy compatriots to the FSRU market. Poten says shipowners there are ‘looking at buying old carriers for conversion and chartering them out to city gas distributors, given attractively low valuations of US$18-20 million’. It continues: ‘Converted FSRUs are attractive to independent Chinese LNG importers that are at the mercy of the country’s three major importers, which can deny third-party deliveries, even when a tanker is en route, because of storage constraints. ‘FSRUs could [also] be competitive against high tolling fees for third-party access, currently sought by state-owned onshore terminal operators.'”