Understand how the fsru market uses both newly built floating regasification vessels and converted LNG carriers, balancing cost and capacity for importers with different needs.

An FSRU can be purpose-built as a new vessel, or it can be converted from an existing LNG carrier. The fsru market offers both options, each with trade-offs. A newly built FSRU is designed from the keel up for regasification, with optimized tank layout, vaporizer placement, and mooring systems. It typically has larger storage capacity and higher regasification rates, and it can be customized for the specific site conditions. However, newbuilding costs are higher and lead times longer. A converted FSRU starts with a used LNG carrier (often after its initial charter period), to which regasification equipment is added. The conversion costs less and can be completed faster, but the vessel may have less storage capacity and a shorter remaining life. For a utility with a long-term need, a newbuild may be justified; for a seasonal or short-term need, a conversion may be more economical.

The process of converting an LNG carrier to an FSRU is complex. The fsru market involves adding vaporizers (typically mounted on deck or below deck), a gas supply system for the vaporizers, and mooring and riser equipment. The existing cargo handling system is modified to allow LNG to be pumped to the vaporizers. The vessel's power system may be upgraded to supply the vaporizer pumps and controls. The classification society must approve the conversion, and new safety systems (gas detection, fire protection) are added. For an LNG carrier that is midway through its life, conversion can extend its useful life and generate revenue in a different role. For a shipyard, conversion projects provide work during downturns in newbuilding orders.

Pairing the fsru market with the floating regasification terminal market shows the importance of site integration. The floating regasification terminal market includes the FSRU itself plus the mooring system, pipeline, and onshore connection. For a converted FSRU, the terminal design must account for the vessel's specific dimensions and mooring arrangement. For a newbuild, the terminal can be designed concurrently. For a utility, the choice between newbuild and conversion depends on the project timeline, budget, and desired capacity. As the fsru market matures, conversion is becoming standardized, reducing risk and cost. The fsru market will continue to offer both pathways, serving different customer segments.

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