New deal sets the stage for LNG vessel conversion to bring floating storage unit at gas terminal in Middle East

BW Group’s BW LNG, a developer, owner, and operator of floating gas infrastructure solutions, has secured a multi-year deal, which will see it refurbish one of its liquefied natural gas (LNG) carriers into a floating storage unit (FSU) expected to be deployed at an LNG terminal in Jordan. This will help strengthen the Middle Eastern country’s energy security.

BW LNG has signed a ten-year charter with the National Electric Power Company (NEPCO), Hashemite Kingdom of Jordan, to deploy an FSU, which will be moored at Sheikh Sabah LNG terminal in Aqaba. NEPCO is expected to buy the vessel at the end of the charter period.

Ahead of the assignment, the LNG carrier, which is anticipated to start operations during Q3-Q4 2026, will undergo conversion to an FSU destined to play “a pivotal role in strengthening the Kingdom’s national energy security needs,” according to the vessel owner, which has 34 vessels, including four floating storage and regasification units (FSRUs) and four newbuilding units under construction.

Yngvil Åsheim, CEO of BW LNG, commented: “We are pleased to work with the National Electric Power Company to provide a reliable long-term solution for energy security, powering electrical generation and industrial use. As part of our fleet of 34 LNG carriers and FSRUs, our vessel will be converted ahead of her 10-year charter in the Hashemite Kingdom of Jordan.”

The plan for Aqaba’s Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah LNG terminal, which is currently operational and connected to the Araba gas pipeline, is to replace the existing FSRU with the FSU unit and an on-land regasification unit. Some modifications to the existing facilities are also expected to reduce cost and increase competitiveness and efficiency while exploring the potential for gas export through the tie-in point and gas pipeline.

“At BW LNG, we are committed to our strategy to provide floating LNG infrastructure as the world moves towards a low carbon society and countries look for sustainable, affordable, and reliable energy,” emphasized Åsheim.

A few months ago, Hanwha Ocean started constructing a new LNG carrier. This vessel, currently expected to be delivered in 2025, is one of the four LNG carriers the South Korean player is building for BW LNG.