Singapore-based Keppel Shipyard has been contracted to convert an LNG carrier to a floating storage and regasification unit (FSRU) for use at El Salvador’s first LNG-to-power project. The FRSU will be installed in the second half of 2021, for the power plant to start operating before year-end.
The contract was awarded by FSRU Development Pte, a joint venture company between BW Gas and Invenergy Investment. The latter is a major investor in Energia del Pacifico (EDP), developer of the LNG-to-power project at Port of Acajutla.
Keppel said its two latest contract wins, for the FSRU and for a US hopper-dredger, were worth around S$200 million (US$147m).
FSRU capacity pegged at 137,000 cbm
BW Group did not disclose which carrier Keppel will convert to an FSRU, but market observers expect the capacity will be around 137,000 cubic meters. The Norwegian ship-owner has five carriers with similar capacities that may be used for the conversion.
For Keppel the conversion order is the fifth so far. It previously delivered Hilli Episeyo, the world’s first floating LNG vessel and is currently converting Gimi for its second FLNG conversion and Singapore’s first LNG bunkering vessel.
Lead time under 24 months
Financial close was reached in December 2019, in time for the integrated LNG regas and power project to be built, commissioned and ready for operational start within 24 months. The project brings approximately $1 billion foreign direct investment for the Central American nation, making it the largest private investment ever in the country.
The FSRU for the Acajutla power plant will permanently moored offshore to convert a steady stream of LNG to natural gas as fuel for power generation. Once regasified, the gas fuel will be transported from the FSRU to the power plant through a sub-sea pipeline to be built by Boskalis.
The overall Acajutla LNG-to Power project will consist of a 378 MW gas-fired power plant, the FSRU and a 44 kilometre electric transmission line that will link the plant with the Central American Electrical Interconnection System which links the grid of six countries.
Shell agreed to supply LNG for the power project under a long-term contract with EDP, El Salvador’s incumbent energy company.