Press Article: Increased use of FSRUs can improve risk profile of LNG sector

Predicting and providing for a nation’s gas demands can be challenging in an ever-changing supply and demand landscape. However, since the world’s first FSRU (floating storage and regasification unit) came into service in 2005, offshore Louisiana in the US Gulf of Mexico, providing the flexibility of choosing an offshore gas terminal rather than onshore terminal, favourable lead time, mobility and capital outlay are key reasons why FSRUs are proving popular.

In the case of the USA, whilst the FSRU proved to be a highly effective and cost-efficient means of importing LNG, in the wake of the US shale gas revolution the US turned from needing to import LNG to becoming a major exporter of LNG. In adapting to this change, decommissioning an offshore facility was far easier than it would have been for an onshore facility.

Winnie Mah, Claims Director, Offshore, discusses the use of FSRUs and the associated advantages and disadvantages, in comparison to onshore LNG import terminals.

The full article is available on the right (page 6) and on the Insurance Day website here.

Category: Offshore & Renewables