Seatrium scoops LNG vessel conversion prize

Singapore's leading offshore and marine company Seatrium has won a contract to convert Hoegh Evi's LNG carrier Hoegh Gandria into a liquefied natural gas floating storage and regasification unit.

Hoegh Evi on Monday confirmed it had signed a 10-year time charter agreement with Egyptian Natural Gas Holding Company (EGAS) for the deployment of the Hoegh Gandria as an FSRU in Egypt.

Seatrium's contract — the value of which was not disclosed — covers the conversion and longevity of LNG carrier, Hoegh Gandria to an FSRU. The workscope includes the installation of a regasification skid, as well as integration of key supporting systems such as cargo handling, utility, offloading, electrical and automation systems.

Engineering works for the project will commence this month with an estimated project duration of 18 months.

The Hoegh Gandria FSRU, which in the fourth quarter of 2026 will take up station at the Port of Sumed, will supply up to 1 billion cubic feet per day of peak LNG regasification capacity, making it a critical part of Egypt’s diversified and flexible energy infrastructure.

To accelerate the FSRU's employment, Hoegh Evi is converting its 2013-built 160,000 cubic metre Hoegh Gandria with the work to commence immediately. The vessel is currently at anchorage in Thai waters, according to marine intelligence provider VesselsValue.

Upstream has contacted Hoegh Evi via email to enquire whether the contractor can share any financial details of its 10-year charter with EGAS.

Hoegh Evi in February purchased for US$184.3 million the Singapore-flagged Hoegh Gandria, the former Golar Seal, from Cool Company (CoolCo) with the intention of converting the LNG carrier into a high-capacity FSRU for long-term deployment.

Executing the conversion reinforces our strategy to leverage the flexibility and high-performance capabilities of marine infrastructure, said Hoegh Evi.

“Hoegh Evi is proud of our longstanding role as a trusted energy infrastructure partner to Egypt and we are excited to begin the conversion of Hoegh Gandria to a floating import terminal, highlighting the unique flexibility of marine infrastructure," said Hoegh Evi chief executive Erik Nyheim.

"We look forward to building on the successful long relationship we have with EGAS and supporting the growth of Egypt’s diversified energy system."

The floater player on Monday also confirmed that its Hoegh Gandria FSRU would replace the Hoegh Galleon, which was deployed to Egypt in July last year, on an interim charter from AIE and Hoegh Evi.

The Hoegh Galleon will remain in Egypt for up to an additional year before deployment to AIE parent Squadron Energy’s LNG import terminal in Port Kembla, New South Wales, Australia, in 2027.

CoolCo is an LNG shipping consortium led by Eastern Pacific Shipping.