{
  "id": 16530103,
  "title": "Korean shipbuilders eye FSRU conversions as aging LNG carriers spur demand",
  "url": "https://urgent.news/2026/10/25/korean-shipbuilders-eye-fsru-conversions-as-aging-lng-carriers-spur",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-25T22:00:44.000Z",
  "source": {
    "name": "Hellenic Shipping News",
    "slug": "hellenic-shipping-news",
    "url": "https://www.hellenicshippingnews.com/korean-shipbuilders-eye-fsru-conversions-as-aging-lng-carriers-spur-demand/"
  },
  "original_language": "en",
  "account": "The shipbuilding industry is exploring new opportunities in converting aging liquefied natural gas (LNG) carriers into floating storage and regasification units (FSRUs). An FSRU is essentially an offshore LNG terminal that stores LNG onboard and then converts it back to gas for onshore distribution. According to industry reports on the 22nd, HD Hyundai Marine Solution has finalized the main design for an FSRU conversion project it won in September of the previous year and is currently working on follow-up tasks. This shipbuilding firm takes on the entire ship conversion process for the transformation of an LNG carrier into an FSRU.\n\nHanwha Power, within the Hanwha Group, is expanding its FSRU conversion business. They initiated this venture in 2023 and are presently finalizing the conversion of a 145,000-cubic-meter-class LNG carrier into an FSRU. The project is nearing completion and is projected to be finished by the end of the year. The FSRU conversion sector is experiencing a surge in interest due to the streamlined manufacturing timeline and minimal initial investment requirements. The International Gas Union (IGU) highlights that an FSRU has a shorter construction period and lower initial investment burden compared to an onshore LNG terminal. Moreover, as the number of LNG-importing nations in Asia is on the rise, many of these countries do not require large-scale terminals as they only import LNG in smaller quantities. The IGU predicts that of the eight new LNG importers anticipated over the next three years, six will adopt FSRUs, and by 2030, the number of countries relying on FSRUs for LNG imports will grow to 20. An additional driving force behind the FSRU conversion market is the rising number of aging LNG carriers nearing the end of their operational lifespan. These carriers, typically scrapped after 35 to 40 years, have high fuel consumption and low energy efficiency standards, leading to a diminished cost burden. This has sparked demand for FSRU conversions instead of scrapping.\n\nAt present, Korean shipbuilders have not amassed many FSRU conversion orders. The industry faces challenges in handling conversion volumes due to strong order backlogs and limited FSRU order records when compared to overseas offshore infrastructure specialists. Consequently, all FSRU conversion contracts secured this year were awarded to overseas firms. However, there is a growing consensus that preparations are necessary, as the market holds potential for expansion in the mid to long term. Industry analyst Han Seunghan from SK Securities states that if FSRU conversion demand escalates, domestic shipyards could benefit from increased volume flow. He emphasizes the importance of establishing a track record of orders to capitalize on this emerging opportunity.",
  "summary": "A project to convert aging liquefied natural gas (LNG) carriers into floating storage and regasification units (FSRUs) is drawing attention as a new market in the shipbuilding industry. An FSRU is an offshore LNG terminal that stores LNG on a vessel and then converts it back to gas for onshore supply. According to the shipbuilding ...",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}