LNG carrier conversions gain momentum as developers seek lower-cost floating storage

Svanehoj has received its first order to supply LNG density, temperature (LTD) gauging systems for an LNG carrier-to-FSU conversion. (Image: Svanejof)

Growing interest in converting existing liquefied natural gas (LNG) carriers into floating storage units (FSUs) is creating new opportunities for equipment suppliers as developers look for faster, lower-cost alternatives to newbuild offshore infrastructure.

The latest example comes from Gabon, where Svanehoj has received its first order to supply LNG density, temperature (LTD) gauging systems for the conversion of the LNG carrier LNG Bayelsa into the floating storage unit Cap Lopez. The project forms part of a larger floating LNG (FLNG) development intended to expand offshore gas production, increase export capacity and reduce routine gas flaring by approximately 105 MMcf/d.

As global demand for LNG infrastructure continues to grow, operators are increasingly evaluating vessel conversions as an alternative to constructing new floating storage facilities. Converting an existing LNG carrier can significantly shorten project schedules while extending the service life of marine assets and reducing capital costs.

Supporting that trend, Svanehoj has received its first order to supply LNG density, temperature (LTD) gauging systems for an LNG carrier-to-FSU conversion. The company will provide four gauging systems for the conversion of the LNG carrier LNG Bayelsa into the FSU Cap Lopez at Drydocks World Dubai. The project is being carried out for Dixstone Lower Gulf FZCO as part of Gabon’s offshore LNG infrastructure expansion.

While the contract represents a milestone for Svanehoj, the broader significance lies in the growing need to upgrade instrumentation and safety systems when vessels transition from transporting LNG to serving as permanent offshore storage facilities.

Unlike conventional LNG carriers, FSUs remain on station for extended periods and require continuous monitoring of cargo conditions. Svanehoj’s upgraded system replaces conventional float-type level gauges with instrumentation that continuously measures LNG density and gas composition inside storage tanks. The data feeds rollover prediction software designed to detect stratification and identify potentially hazardous rollover events before they occur, helping improve both operational efficiency and storage safety.

The overall conversion includes extensive modifications, including structural work, piping installation, new process modules, tank coating and life-extension activities under Lloyd’s Register classification. Completion is scheduled for the third quarter of 2027.