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Teekay converts vessel into FSU for Bahrain LNG-import venture

Thu 18 Feb 2016 by Karen Thomas

Teekay converts vessel into FSU for Bahrain LNG-import venture
Teekay will station its first FSU at Hidd in northern Bahrain. Mubarak Fahad

Bermuda-headquartered Teekay LNG is to convert one of the LNG carrier newbuildings it has ordered from Daewoo Shipbuilding & Marine Engineering (DSME) into a floating storage unit (FSU) to be based for 20 years in Bahrain.

In December, Teekay signed a joint venture agreement to develop its first LNG regasification terminal, at Hidd in northern Bahrain, under a 20-year contract to start in summer 2018. It has now confirmed that it will convert an unfixed ME-GI LNG carrier into the FSU for that project. The vessel in question is thought to be Hull 2461, a 174,000mᶾ LNGC that Teekay ordered from DSME a year ago.

Teekay LNG Partners, Samsung C&T and Gulf Investment Corp (GIC) together set up Bahrain LNG and secured the US$644 million contract as a build, own, operate, transfer project. It is the first deal of its kind in the Middle East developed as a public-private partnership.

Announcing its 2015 results, Teekay chief executive Peter Evensen said the company’s priorities this year are to secure long-term finance for its projects.

He said: “Our first two ME-GI LNG carrier newbuildings, which will be financed with a recently secured US$360 million long-term lease facility, are scheduled to commence their fee-based contracts with Cheniere Energy in March and the third quarter of 2016, lifting LNG cargoes from… Sabine Pass.”

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