London-based Watson Farley & Williams (WFW), who advised Honduras-based Genesis Energias on the chartering of Knutsen’s LNG carrier Bilbao Knutsen, revealed the deal in a statement on Thursday.
WFW said the 2004-built LNG carrier shall be used as an LNG floating storage unit for the loading, storage, and discharging of LNG as part of the Genesis Energias LNG-to-power project in Honduras.
According to the law firm, South Korea’s HD Hyundai Marine Solution, a subsidiary of HD Hyundai Group, will convert the LNG carrier into an FSU.
In August, HD Hyundai Marine Solution announced a contract for one FSU conversion worth $30 million, saying the client is a European shipping company.
HD Hyundai Marine Solution plans to complete the contract by the first half of 2025.
WFW said Genesis will import LNG internationally through the LNG terminal it is currently constructing in Puerto Cortes on Honduras’ Caribbean coast using the 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,” it said.
WFW did not provide further details.
Honduras currently does not have LNG import facilities, according to GIIGNL data.
The Genesis Energias website does not provide further information about the planned LNG-to-power project.
In 2021, the 138,000-cbm LNG carrier Bilbao Knutsen suffered damage after colliding with another tanker offshore the Port of Huelva in Spain.
The LNG carrier, which was serving Shell under a long-term charter at the time, collided with product tanker STI Pimlico about 2.5 miles off the Huelva port.
Spain’s Izar delivered Bilbao Knutsen to Knutsen in 2004.
The vessel has a steam turbine propulsion and GTT NO96 containment tech.
