An LNG carrier operated by Norwegian shipping company the Knutsen Group will be converted into a floating storage unit (FSU) to support the loading, storage and discharging of LNG as part of an LNG-to-power project in Honduras.
The 2004-built Bilbao Knutsen will be chartered by Genesis Energias following its conversion into an FSU. Genesis will import LNG internationally through the LNG terminal it is currently constructing in Puerto Cortes on Honduras’ Caribbean coast, and Bilbao Knutsen will be used as an FSU for the onward transmission of LNG to the Brassavola Thermal Power Plant.
The project is envisioned to help Honduras switch away from fossil fuels for power generation to cleaner energy, reducing both the country’s production costs and boosting industrial development in the area.
The London Maritime Team of Watson Farley and Williams (WFW) has advised Genesis Energias on the chartering of the vessel. This also included advising on taxation and German law aspects.
Conversion of Bilbao Knutsen will be undertaken at HD Hyundai Marine Solution in South Korea.