Dynagas LNG Partners eyes FSRU conversions as Europe boosts LNG imports

Dynagas LNG Partners could look into converting its LNG carriers into FSRUs as Europe looks for fast-track import solutions in order to reduce dependence on Russian gas.

The limited partnership formed by Greek shipowner Dynagas currently has six LNG carriers built between 2007 and 2013.

Gazprom has chartered three vessels, Novatek’s Yamal LNG two, and Norway’s Equinor one.

Equinor’s charter for the 2013-built, 155,000-cbm Arctic Aurora will end in the third quarter of 2023. The 2007-built Clean Energy, chartered by Gazprom, will follow in 2026.

FSRU conversion drawings ready

Due to the Russia-Ukraine crisis, Europe is looking to reduce its reliance on Russian gas and boost LNG imports. Several countries are planning to install FSRUs in order to diversify gas sources as soon as possible.

“There is definitely more interest in the FSRU space, and in particular, around the European continent,” Tony Lauritzen, chief executive of chief executive Dynagas LNG Partners, told analysts during the company’s fourth-quarter conference call on Friday.

Parent Dynagas already has two newbuild FSRUs in its fleet, namely the 174,000-cbm Transgas Force and Transgas Power. However, both of these units are serving as LNG carriers until the next year.

Lauritzen said that Dynagas LNG could consider buying these vessels from the sponsor. However, he doesn’t think that would be a “very easy discussion.”

“Now when it comes to converting some of the units that we have coming off charter in the future, that is definitely something we could look at,” he said.

“For example, for some of the designs we have the conversion drawings ready, so that is probably something that is more realistic,” Lauritzen said.

Newbuild on the horizon?

Lauritzen also hinted that the company could place an order for a new LNG carrier.

“When it comes to fleet growth, we are getting closer, we believe, to a point where we will do something,” he said.

“So if that means buying a sponsor vessel, or if that means buying a second hand vessel, or if that means ordering a newbuild – that is yet to be seen,” he said.

“And if we were to order a newbuild, it is most likely that it would have to be covered by a long-term contract,” he said.

- Advertisements -

Most Popular

Trafigura to supply US LNG to Germany under new deal

Commodity trader Trafigura said it would supply liquefied natural gas (LNG) from the US to Germany under a new...

Sempra and Engie seal Port Arthur LNG supply deal

French energy firm Engie has agreed to buy liquefied natural gas for a period of 15 years from Sempra...

Trinidad, Shell, BP move forward with Atlantic LNG restructuring plans

Trinidad and Tobago has signed a restructuring deal with the shareholders of LNG producer Atlantic LNG, including Shell and...

More News Like This

Dynagas LNG Partners logs higher net income in Q2

Dynagas LNG Partners, the owner of six LNG carriers which operate under long-term charters, reported an increase in its...

Germany picks Stade and Lubmin to host chartered FSRUs

Germany has chosen Stade and Lubmin as the next two locations to install the chartered floating storage and regasification...

Dynagas LNG Partners posts higher profit in Q1

Dynagas LNG Partners, the owner of six LNG carriers which operate under long-term charters, reported a rise in its...

Dynagas FSRU duo to start German jobs in 2023

Uniper confirmed it has signed a deal with Greece's Dynagas to charter two floating storage and regasification units on...