Singapore engineering firm to build a floating gas storage vessel for Egypt

Photo Source: Höegh Evi

Seatrium, a Singapore-based engineering firm specialising in constructing offshore hydrocarbon vessels, has secured a contract for a floating storage regasification unit (FSRU) that will be deployed in Egypt to support the import of natural gas. FSRU vessels are used to store liquefied natural gas (LNG) at sea and convert it back into gas so it can be delivered via land-based pipelines.

The project, commissioned by Norwegian marine energy infrastructure company Höegh Evi, involves converting the Hoegh Gandria, an existing LNG carrier, into an FSRU. The conversion is expected to take 18 months, after which the vessel will be deployed at Egypt’s Port of Sumed under a 10-year agreement with the Egyptian Natural Gas Holding Company. 

The deal comes as Egypt – once self-sufficient in natural gas – is scrambling to secure gas supplies for electricity generation following a sharp drop in domestic output. The North African country’s gas production fell from 4.6bn cubic metres in January 2024 to 3.3bn cubic metres in February 2025, the lowest level since April 2016. In response, the country has been in discussions with energy companies and traders to secure LNG imports.

The project adds to the expanding list of African oil and gas projects executed by the shipbuilding and marine engineering industry of Singapore. MODEC Offshore Production Systems, a Singapore-based subsidiary of Japan’s MODEC, supplied the Léopold Sédar Senghor floating production storage and offloading (FPSO) unit for Senegal’s Sangomar oil field, which began production last year. FPSOs are vessels designed to process and store oil or gas from undersea wells, and transfer the extracted resources to tankers or pipelines. MODEC is also responsible for the FPSO’s operation and maintenance. Singapore’s Keppel Offshore & Marine, now part of Seatrium, supported its construction. Seatrium also converted an end-of-life LNG tanker into the Gimi, a floating LNG vessel designed to liquefy natural gas from offshore fields of Greater Tortue Ahmeyim, which lies between Senegal and Mauritania.

Singaporean shipbuilder Strategic Marine earlier this year commissioned three offshore supply vessels for a national oil company in Southern Africa. The vessels are designated for transporting personnel to offshore platforms and FPSOs.

Enterprise Singapore, the government agency supporting the internationalisation of local businesses, has identified significant opportunities for Singapore firm in the African oil and gas value chain. This includes front-end engineering design, offshore asset and vessel construction, maintenance and repair operations, vessel chartering, subsea equipment supply, oil spill response, environmental management, and workforce training.

The FSRU contract in Egypt underscores the rising influence of Singaporean firms in the African energy sector. As Egypt ramps up LNG imports, investment opportunities in floating energy solutions, offshore engineering, and LNG technologies are likely to emerge.

References

‘Keppel O&M awarded floating production contracts worth around S$75 million’, Keppel, 01 August 2022 

‘Sangomar FPSO relocating to Singapore’, Offshore, 30 November 2022

‘Seatrium delivers world’s second floating liquefaction vessel conversion for sustainable LNG production’, Seatrium Limited, 20 November 2023

‘Woodside's Sangomar project produces first oil in Senegal’, Reuters, 12 June 2024

‘MODEC congratulates Senegal and Woodside on first oil at Sangomar Field Development Phase 1’, MODEC, 12 June 2024

'LinkedIn post', EnterpriseSG - Africa, November 2024

‘Three new offshore supply vessels commissioned for Southern African oil company’, Engineering News, 19 January 2025

‘Höegh Evi signs FSRU charter with EGAS, supporting Egypt's role as energy hub in the Middle East’, Oil and Gas Online, 12 May 2025

‘Egypt secures 10-year floating LNG terminal deal with Hoegh Evi’, Reuters, 12 May 2025

‘Seatrium secures FSRU conversion contract from Hoegh Evi, Norway’, Seatrium, 13 May 2025