The way FSRUs operates and the services they offer have changed, FSRUs have become less and less transformed into LNG and LNG import terminals. However, the TCP forms used for chartered FSRUs did not necessarily follow these changes. A typical TCP FSRU can predict this, as many provisions are relevant and proportionate when the FSRU is active as LNG, but not when the FSRU is semi-solidly attached to an LNG import terminal. In addition, MOL has entered into an agreement with Royal Vopak (Chairman and CEO: Eelco Hoekstra) for this project. Royal Vopak is the world`s leading independent fuel storage company and will contribute to the development of projects related to Jetty Operation And Maintenance services, taking advantage of its global track record in the operation of LNG terminals. The nature and scale of LNG import projects using FSRus have also changed in recent years. The first FSRU projects were launched to import LNG into the United States and the United Kingdom, both of which were large liquid markets with established downstream infrastructure. The next wave of FSRU projects provided that FSRUs were largely chartered by large state-owned distribution companies to import gas into the local grid for continued supply. However, in many cases, FSRUs are now chartered by independent project proponents, often for the sole purpose of providing a single or small dedicated group of independent energy projects (IPPs) or industrial users. One of the challenges facing this new wave of proponents and projects is that the liability regime under a typical TCP FSRU does not always correspond well to the requirements of these projects.
This is particularly the case for electricity LNG projects. The FSRU, designed to German requirements, is built by Daewoo Shipbuilding and chartered by LTW owner Mitsui OSK Lines for 20 years, Uniper said. It was planned and customized by both contracting parties according to local and environmental requirements for the German market and the Wilhelmshaven site. FSRUs have many advantages, including the ability to launch LNG import projects more quickly and with less initial capital. Less pre-capital is required, as FSRUs typically cost 40-50% less than onshore facilities. In addition, FSRUs can be chartered instead of being directly in possession of the project. FSRUs are almost always chartered under a time Charter Party (« TCP »). As part of a TCP, the FSRU is still owned and operated by the shipowner, who supplies the master and crew. A TCP allows the project proponent to pay a monthly rental rate and manage the use of the FSRU without the need to invest capital in advance to buy or build the FSRU. Gaussin has signed an exclusive 20-year licensing agreement for the electric and hydrogen truck market to accelerate the transition to carbon-free transportation…. The FSRUs and TPCs are here to stay. With a good change in mentality, the TCP can continue to play a decisive role in the link between FSRU owners and FSRU charterers in many future LNG import projects.
TPTs are not new to the LNG industry.