Exmar to Convert LNG Carrier Simaisa into Floating Transshipment Unit for Bunkering Market
Key Takeaways
- •Exmar will convert the 2006-built, 146,000 m³ LNG carrier Simaisa into a floating transshipment unit dedicated to LNG bunkering operations.
- •The vessel is secured under an initial seven-year charter contract with an undisclosed party.
- •The FTU will function as an intermediary hub, receiving large LNG cargoes from conventional carriers and supplying smaller bunker vessels that deliver fuel to LNG-powered ships.
- •Exmar expects the FTU model to reduce the logistics costs that have been cited as a barrier to wider adoption of LNG as a marine fuel.
- •Growing demand for LNG bunkering is driven by tightening IMO emissions regulations and broader greenhouse gas reduction targets in the maritime industry.
Maritime transportation company Exmar is set to convert the 2006-built LNG carrier Simaisa into a floating transshipment unit (FTU) designed to serve the LNG bunkering market.
The 146,000 m³ vessel, which Exmar has recently taken delivery of, is secured under an initial seven-year charter contract with an undisclosed party, the company announced in a press release on Thursday. At approximately 20 years old, Simaisa will soon enter dry dock to undergo modifications that will adapt it for its new role as an FTU.
Once operational, the unit will function as an intermediary hub in the LNG bunkering supply chain. It will receive large LNG cargoes from conventional LNG carriers, while smaller LNG bunker vessels will load fuel from the FTU before delivering it to LNG-fuelled ships. Exmar said this configuration is expected to reduce the logistics costs typically associated with LNG bunkering operations.
The conversion comes as the maritime industry continues to adopt LNG as a marine fuel, driven by tightening emissions regulations including the International Maritime Organization's limits on sulphur content in marine fuels and broader greenhouse gas reduction targets. LNG produces lower sulphur oxide, nitrogen oxide, and particulate matter emissions compared with conventional heavy fuel oil, and the global LNG bunkering fleet has been expanding to meet demand from a growing number of dual-fuel and LNG-powered vessels. High logistics costs and limited bunkering infrastructure in certain regions have been among the factors cited as barriers to wider adoption of LNG as a marine fuel, an issue Exmar's FTU model is designed to address.
"EXMAR is gladly assisting its client in further paving the way to unlock LNG as a fuel for the shipping industry," said Carl-Antoine Saverys, CEO of Exmar.
"The FTU is a smart solution with which our client [can] bring down the costs of the logistics relating to the LNG bunkering," Saverys continued.
"With this solution, we are building upon EXMAR's close to 50 years of LNG experience. We look forward [to] deploying more of these assets to unlock the full potential of LNG as a fuel for the maritime industry."