NYSE-listed LNG shipping firm GasLog Partners is planning to convert one of its carriers with a steam turbine propulsion to an FSRU for Venice Energy’s LNG import project in the Port of Adelaide, South Australia.
Peter Livanos-led GasLog, which recently sent a buyout offer to GasLog Partners, signed a heads of agreement with Venice Energy back in 2021 to supply an FSRU for the latter’s LNG import terminal.
Under this agreement, the two firms agreed to negotiate a charter deal with a duration of about 10 years.
“As mentioned in our previous calls, the work with Venice Energy has progressed,” Paolo Enoizi, CEO of GasLog Partners, said during the company’s fourth-quarter earnings call on Friday.
“And although still under negotiation, we have agreed in principle that the Partnership will convert one of its 145,000-cbm steam LNG carriers to an FSRU, which will be chartered to Venice Energy as effective returns,” he said.
GasLog Partners currently has four 145,000-cbm LNG carriers with a steam propulsion in its fleet.
These include the 2006-built Methane Jane Elizabeth, which is on charter to Cheniere, the 2006-built Methane Rita Andrea, which is on charter to an energy major, the 2007-built Methane Alison Victoria, which is on charter to CNTIC Vpower Energy, and the 2007-built Methane Heather Sally, which is on a bareboat charter with a Southeast Asian charterer.
FID this year?
According to Enoizi, “further information on the project FID are expected in mid-2023.”
“Such conversion is expected to cost in excess of $100 million and take between eight to 10 months,” Enoizi said.
Last year, Japanese trading and investment house, Marubeni, signed a memorandum of understanding with Venice Energy to join the latter’s FSRU-based LNG import project in South Australia.
Venice Energy said at the time that as part of the deal with Marubeni it would create a joint venture partnership for its A$260 million ($184 million) project under development in South Australia.
The terminal would include the development of two berths in the Outer Harbor channel at Port Adelaide, along with an FSRU, cryogenic piping, as well as associated infrastructure.
Venice Energy expects it would take about 12 months to complete and operate the project over the next 10 years in support of Australia’s transition to a “renewable energy landscape”.