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FSRU vessel

The tender for the procurement of the FSRU vessel (Floating Storage and Regasification Unit) and the provision of FSRU operation and maintenance services was launched on 8 September 2017 and it was canceled on 24 April 2018, as technical characteristics and capacities of the initially requested FSRU were revised in a way that they would ultimately reduce the initially planned capital cost of the project and allow the realization of the project with lower capacity booking. 

Following the cancellation of the tender for the FSRU vessel, a detailed market analysis was made and all the companies operating in this segment (Höegh LNG, Golar LNG, Excelerate Energy, BW Gas and Mitsui O.S.K. Lines (MOL)) presented their capabilities and possible technical solutions. Further to the market analysis, it was concluded that if smaller capacity FSRU was purchased, it would be in line with the transport system's capabilities and market needs (the gas transport system can receive 2.6 billion m³ annually, of which 1.5 billion m³ could exit from the Republic of Croatia with respect to interconnection capacities), it is possible to reduce the initially planned capital cost for the procurement of an FSRU vessel by approximately EUR 100 million. It is calculated that the mentioned decrease will allow the competitive tariff to be retained on a lower capacity booking and the realization of a terminal, i.e. the Final Investment Decision will be adopted on a lower capacity booking in the Open Season (a procedure of binding capacity booking that was carried out in parallel). 

Following the cancellation of the tender, which was ongoing on 24 April 2018, the tender for FSRU vessel of reduced capacity was opened on 8 May 2018 and closed on 15 June 2018. The bidder could offer a new FSRU vessel to be built, an existing FSRU vessel or a new conversion of an LNG carrier to an FSRU vessel, with a minimum of 135,000 m³ of tank capacity and 2.6 billion m³ of annual regasification capacity. Following the closing of this tender, after review and evaluation of the submitted bids, it was concluded that the bids did not fully comply with the formal requirements for the submission of bids in the manner prescribed by the tender documentation and could not be declared valid. In addition, a decision was adopted to cancel the previous procurement procedure and the tender was reopened on 24 July 2018. By the deadline for submission of bids, 5 October 2018, three bids were received from the following bidders: Golar, Mitsui O.S.K. Lines and Maran Gas Maritime Inc. After review and evaluation of the bids, the commission for opening, reviewing, evaluating the bids and selecting the most economically advantageous bidder concluded that the bid from Golar was fully in line with the conditions set out in the tender documentation and that the bid is highest-ranked with the highest number of points according to the criterion for selecting the most economically advantageous bid. Committee for opening, reviewing, evaluating the bids and selecting the most economically advantageous bidder consisted of representatives of LNG Croatia LLC, representatives of Plinacro, representatives of HEP, representatives of KPMG who were engaged in consultancy services related to the preparation of tender and representatives from the Law Firm Hanžeković & Partners who were engaged in consultancy services related to the preparation of the tender. 

Golar has offered a new conversion of the existing LNG carrier to an FSRU which value is EUR 159,6 million. It is an LNG carrier, which was built in 2005 and which sails under the name "Golar Viking". At the time of delivery, the vessel will be delivered to the LNG terminal location from the shipyard as a new FSRU conversion in accordance with the highest technical and environmental protection standards, as required by tender documentation. The contract was signed on 28 January 2019 and became effective upon the Final Investment Decision on 31 January 2019. In accordance with the contractual obligations, the delivery of the FSRU vessel to the terminal location is planned between 30 September 2020 and 30 October 2020, while the exact delivery date of the FSRU vessel will be determined in November 2019. 

The selected FSRU vessel has a capacity of 140,206 m³, with a nominal LNG regasification capacity of 300,000 m³ of natural gas/hour, which gives an annual capacity of 2.6 billion m³ of gas, which is in line with the technical capacity of the gas transmission system of Republic of Croatia. 

Offered technical solution for LNG regasification (conversion of natural gas from liquid to gaseous state) will work in the open loop system in such a way that during the intake and discharge of sea water the FSRU will not use electro-chlorination (extraction of chlorine from the sea) for the purpose of preventing marine growth in the system, since it will work on the principle of mechanical cleaning of the entire system as part of regular annual maintenance of the FSRU. Although the use of electro-chlorination without the negative environmental impacts of such systems is used in accordance with technical standards, LNG Croatia, with the aim of taking into account the local community's position on non-acceptance of the use of chlorine during the LNG regasification process, has given additional points to solutions for systems which enable mechanical cleaning of the system from marine growth which occurs during the sea water flow.