The planned floating storage and regasification unit (FSRU) for the 5mn t/yr Jafrabad LNG import terminal in India's northwest Gujarat state has left South Korean shipbuilder Hyundai Heavy Industries' (HHI) shipyard.
The 180,000m³ Vasant left the Ulsan shipyard early today, declaring for arrival at Singapore on 16 October.
Jafrabad operator Swan Energy in August last year postponed the start-up of the project from April to October this year, after the terminal's breakwater was damaged by monsoon rains. The FSRU had been slated for delivery from HHI last month.
Delivery of the vessel and commissioning of the Jafrabad terminal would raise India's nominal LNG import capacity to 47.5mn t/yr, having risen to 42.5mn t/yr earlier this year following the start-up of the 5mn t/yr Mundra terminal.
Errant FSRUs
The new vessel may not be delivered straight to the project and could join a number of other FSRUs that have seen delays to their import projects, or to their own construction.
Indian firm H-Energy's planned 4mn t/yr Jaigarh FSRU import project had been expected to start-up in the fourth quarter of 2020, following multiple delays to its commissioning. The project's 145,000m³ Cape Ann FSRU has recently been operating on the LNG carrier market, delivering an Australian cargo to South Korea's Incheon terminal on 2 October. The vessel is now declaring for arrival at Singapore for 10 October. The Cape Ann arrived at Jaigarh earlier this year, holding offshore from late February until mid-May before being sub-let.
The delays to the Jaigarh and Jafrabad terminals could result in deliveries of commissioning cargoes to the projects being deferred, weighing on LNG demand over the northern hemisphere winter.
And a planned FSRU swap at Pakistan's Engro Elengy import terminal has yet to take place, despite being expected to occur ahead of winter. The new 173,400m³ Excelerate Sequoia FSRU had been scheduled to replace the installed 150,900m³ Exquisite vessel earlier this year, but has been operating on the spot charter market since its delivery in June. The Excelerate Sequoia is declaring for arrival at the Freeport LNG export facility in the US on 22 October, where it is likely to load a cargo.
Turkish firm Botas' new FSRU, to replace the 263,000m³ FSRU Challenger at its 4.6mn t/yr Dortyol import terminal, has also experienced delays. The 170,000m³ Ertugrul Gazi had been expected to be delivered last month, but remained at the Ulsan shipyard today.
Botas extended its charter on the FSRU Challenger by a further 10 months earlier this year, suggesting that the firm may have been expecting delays to the planned FSRU swap. The FSRU Challenger is expected to be installed at Hong Kong's planned 4mn t/yr terminal, which is due to start up in late 2021.
The two FSRUs replacements may have been delayed until after winter, but could temporarily reduce import capacity for Turkey and Pakistan during the winter should they take place during the middle of the season, as the installed vessels are removed and the new FSRUs are situated.
