Importance of FSRUs for a dynamic LNG market

By Andrew Stafford, Trelleborg Marine and Infrastructure

Floating storage and regasification units (FSRUs) have become firmly established as part of cost-effective, flexible infrastructure for the growing global liquefied natural gas (LNG) market. Projected growth in FSRU capacity is estimated at a 6% CAGR, driven by an anticipated 8.3% rise in LNG trade between 2024 and 2029. However, increasing demand for FSRUs is outstripping supply due to a lack of shipbuilding slots. It is anticipated that this gap will be met by converting LNG carriers.

With rising numbers of FSRUs being deployed, it is important to ensure that their operations are optimized. This will help ensure a strong platform for scaling their use and deliver the highest performance and return on investment for operators.

Efficiencies of ship-to-ship transfers

One of the most significant innovations enabled by FSRUs is the increased use of ship-to-ship (STS) transfers in LNG logistics. FSRUs continue to play a crucial role in these operations, serving as intermediaries between LNG carriers and smaller distribution vessels. By receiving, storing, regasifying and transferring LNG at sea, FSRUs reduce the need for land-based terminals and create a more dynamic supply chain that can quickly adapt to varying levels of demand.

Now that STS transfers have become more prevalent, standardizing equipment and procedures is crucial. The LNG industry has historically relied on a mix of legacy systems, particularly in areas like emergency shutdown links, which can create compatibility challenges between older vessels and modern FSRUs. Standardizing these systems is essential for improving operational efficiency and ensuring the safe transfer of LNG.

Recent advancements in ship-to-shore link (SSL) technology have helped overcome these challenges by enabling more reliable connections between vessels. Modern SSL systems allow for seamless communication and operational control during LNG transfers, reducing the risks associated with equipment incompatibility and improving the speed of transfer operations. By adopting these standardized systems, the industry can create a more consistent and safe LNG transfer process, essential for the continued growth of STS operations.

Tapping into digitalization

Digitalization is also playing a pivotal role in improving the performance and safety of FSRUs and STS transfers. Modern FSRUs are equipped with advanced digital systems that allow for real-time monitoring, data exchange and automated control during transfers. This not only improves the accuracy and speed of process transfers but also enhances safety by reducing the potential for human error.

Moreover, the integration of digital platforms allows for more streamlined operations, enabling better communication between FSRUs, LNG carriers and onshore facilities. This connectivity is crucial for ensuring that LNG supply chains remain flexible and responsive to changing market conditions. As the LNG industry continues to embrace digitalization, the adoption of these technologies will further enhance operational efficiency and safety across the entire supply chain.

Looking ahead

As the LNG market continues to be dynamic, energy companies that leverage FSRUs will be better positioned to respond to changing demand patterns and supply constraints. Harmonizing supporting systems is essential for de-risking operations as well as significantly contributing to operational efficiencies.

Looking ahead, LNG newbuilds could be swapped out for FSRU newbuilds. They can still operate as LNG carriers if required, but the flexibility of an FSRU built speculatively to be deployed as needed could be a huge market advantage in the current climate.