What is an FSRU?

Floating Storage and Regasification Unit. Think of this as the equivalent of an LNG import facility, only the vaporization and storage capabilities are located on a ship, rather than on land. FSRUs provide the obvious advantage of being mobile, but they can also help bring gas to market more quickly and cheaply than an on-land new build regas facility, and potentially without the “Not in My Backyard (NIMBY)” issues that may hinder constructing new infrastructure on land. FSRUs can also be used as long-haul LNG carriers. According to Flex LNG’s website, as of December 2021, “in addition to the existing 21 projects in operation [globally] there are a further 13 FSRU projects under construction, with another 30-55 additional proposed projects of various stages of development.”