GasLog Partners aims to convert steam LNG carrier to FSRU for Australian project

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”.

Most Popular

Hanwha Ocean scores $1.26 billion order for LNG-powered containerships

Hanwha Ocean said on Thursday it will build six containerships with a capacity of 15,000 teu. The order is worth...

Chevron Australia says strike not expected to impact LNG production

The Offshore Alliance, which includes the Maritime Union of Australia and Australian Workers’ Union, said that its members working...

Vopak, Transnet moving forward with South African LNG terminal plans

In January, South Africa’s Transnet National Ports Authority appointed the two firms to build and operate the import facility at the...

More News Like This

GasLog takes delivery of LNG carrier in South Korea

Greece’s GasLog has taken delivery of a new liquefied natural gas (LNG) carrier from Hanwha Ocean in South Korea. According...

Gastrade launches commercial ops at Greece’s first FSRU

Gastrade said in a statement the transformation of Alexandroupolis into a new energy gateway for the entire Central and...

GasLog plans to fuel LNG carriers with ammonia

Hanwha Power Systems, a marine solutions company of Hanwha Group, and GasLog signed a memorandum of understanding at the...

CDB Leasing inks deal for another GasLog LNG carrier

The Hong-Kong listed firm revealed this in a stock exchange filling last week. CDB Leasing’s unit entered into a vessel...