GasLog Ltd. has announced that Keppel Shipyard Limited (“Keppel”) has begun ordering long lead items (“LLI’s”) required for the conversion of a GasLog or GasLog Partners LP (“GasLog Partners”, NYSE: GLOP) LNG carrier to a floating storage and re-gasification unit (“FSRU”).
The LLI’s include pumps, vaporizers, heat exchangers and low duty compressors, which are vital equipment for the conversion process. The LLI’s take approximately 12 months to deliver at a total cost of around $16 million. Ordering the LLI’s reduces the time necessary to convert an LNG carrier from between 18-20 months to 6-8 months once the LLI’s are delivered.
Keppel has carried out 3 successful conversion projects in the past.
Securing the LLI’s at this time, puts GasLog in a position to offer a fast track solution for FSRU projects in the future. GasLog is working on a number of potential projects where the LLI’s could be used in a vessel conversion and has a number of well suited candidates for conversion in its fleet of LNG carriers.
Paul Wogan, Chief Executive Officer of GasLog Ltd., stated:
“GasLog’s success in developing both its FSRU capability and its industry relationships has allowed the early ordering of the LLI’s. This is a reflection of the progress we are making with a number of different projects around the world.”
Source: GasLog
