Excelerate to splash about $332 million on FSRU order in South Korea

Excelerate Energy will pay about $332 million for a floating storage and regasification unit (FSRU) it ordered at South Korea’s Hyundai Heavy Industries.

The US floating LNG player said on Tuesday it had signed a binding shipbuilding contract with Hyundai Heavy for one 170,000-cbm FSRU scheduled for delivery in June 2026.

However, the firm did not reveal the price tag of the deal.

HHI’s parent KSOE said in a statement on Wednesday that HHI would build one FSRU for about 475.7 billion won ($332 million), which is a very high price, and deliver it to Excelerate by June 2026.

This price Excelerate would pay for the vessel is probably the highest price to date for a single FSRU of this or similar size.

Prices for 174,000-cbm LNG carrier newbuilds surged during the last year from about $185 million to record highs of up to $250 million.

FSRUs are more expensive as these units have regasification modules and other additional equipment installed onboard.

With this newbuild order, Excelerate will have 11 FSRUs in operation or under construction.

FSRUs are in great demand as European countries look to fast-track LNG imports and slash reliance on Russian pipeline gas.

Excelerate already chartered its 150,900-cbm Exemplar to Finland’s Gasgrid and another vessel to a project led by Germany’s E.ON, Belgium-based Tree Energy Solutions (TES), and a unit of France’s Engie.

In addition, the US firm plans to deploy its FSRU Excelsior to serve the Vlora LNG project in Albania after the unit completes its contract in Israel.

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