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The 141,000-cubic-meter steam turbine LNG carrier Bayelsa, built in 2003, is being converted into a floating storage unit (FSU) at Drydocks World Dubai. The vessel, now temporarily named FSU LNG Cap Lopez, will serve the $2 billion Cap Lopez project in Gabon, led by Perenco.
The Gabon development follows similar floating LNG initiatives in Cameroon, Congo, Mozambique, and Senegal. Most of these projects use converted older steam turbine vessels to generate significant new revenue streams over extended operating lives.
Drydocks World Dubai is handling the conversion for Dixstone Lower Gulf FZCO, a Dubai-based affiliate of Perenco. Lloyd’s Register will oversee the conversion and life extension requirements, ensuring the vessel remains operational in West Africa for years.
Sean Van der Post, LR’s Global Offshore Business Director, said the project shows growing interest in LNG carrier conversions and floating storage. “The FSU LNG Cap Lopez conversion reflects increasing momentum behind LNG carrier conversions and floating storage solutions as operators seek flexible, lower-impact ways to develop gas resources. Independent technical assurance and robust life-extension strategies are essential as assets are adapted to new operating profiles and environments,” he said.
Floating storage gains traction amid high newbuild costs
Floating gas projects are becoming a preferred option as operators seek flexible, lower-cost alternatives. New LNG carriers are expensive and face limited construction slots in today’s shipbuilding market. Conversions provide a faster and often cheaper solution.
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Steam turbine LNG carriers, once seen as outdated, are now being repurposed for these projects. Their continued use offers economic benefits, especially in regions where gas infrastructure is still developing.
For Gabon, the Cap Lopez project is an important step in expanding its energy sector. The country has turned to floating LNG solutions to monetize offshore gas reserves without the delays and costs of traditional onshore facilities.
Floating LNG projects have advantages but also challenges. Older vessels need careful assessment to ensure they can operate safely in harsh offshore conditions. Classification societies verify structural integrity, safety systems, and compliance with international standards.
The trend toward floating storage and conversions extends beyond Africa. Similar approaches are appearing in Southeast Asia and Latin America, where operators want to bring gas resources to market more efficiently. This method helps companies avoid the high costs of newbuilds while meeting energy demands.
If successful, it could become a model for other African nations developing gas resources with minimal environmental impact.
