Modern energy supply challenges are becoming increasingly complex due to the need for balanced distribution across various regions. An effective solution in the LNG industry to address these challenges is the Floating Storage Unit (FSU).
This facility serves as a floating LNG storage unit, offering agility in the LNG supply chain while ensuring safer and more efficient deliveries.
What Is a Floating Storage Unit (FSU)?
A Floating Storage Unit (FSU) is a floating LNG storage facility that functions as a large-scale “storage” for LNG at sea.
FSUs are usually converted from LNG carriers, although some are purpose-built from the start specifically for storage functions.
The primary role of an FSU is to receive LNG from tankers, store it in cryogenic tanks at extremely low temperatures, and then transfer it either to another vessel or to a regasification terminal.
Since FSUs are not equipped with regasification units, they serve purely as storage facilities.
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How Does an FSU Work?
The FSU’s operational cycle begins when an LNG carrier arrives at the location. LNG is transferred from the carrier to the FSU’s tanks through a specialized loading system. Once received, the FSU stores the LNG in its liquid state at very low temperatures.
When gas supply is needed, LNG is transferred from the FSU to the nearest regasification terminal (either an FSRU or an onshore terminal) or directly to smaller vessels for distribution.
This process is conducted via ship-to-ship or ship-to-shore transfer systems. With its capability to store large LNG reserves offshore, an FSU ensures supply continuity even when LNG carriers cannot arrive on schedule.
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What’s the Difference Between an FSU and an FSRU?
Although both are floating facilities, FSUs and FSRUs (Floating Storage and Regasification Units) have fundamental differences.
An FSU’s function is strictly storage. It does not have regasification capabilities. To convert LNG into gas, an FSU must connect to a separate regasification unit.
In contrast, an FSRU combines storage and regasification functions, making it a more integrated solution, especially for regions that require direct gas supply from a floating terminal.
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What is the Role of an FSU in the LNG Industry?
FSUs offer high flexibility and play a vital role in the LNG industry, not only as storage units but also as essential supports for energy supply.
Acting as an LNG Storage Buffer
FSUs function as floating storage warehouses. This capability is crucial for balancing unstable supply and demand. When LNG supply is abundant, FSUs can store excess cargo, preventing oversupply at terminals.
Conversely, during sudden demand surges or supply disruptions (e.g., due to weather issues), FSUs can release LNG reserves to maintain a stable supply.
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Supporting FSRU and Onshore Terminal Operations
FSUs can enhance the efficiency of FSRUs and onshore terminals. They can anchor near regasification terminals and receive cargo from large LNG carriers.
As a result, FSRUs or onshore terminals can operate continuously, as LNG supply is constantly available from the FSU. This also reduces port congestion and ensures smoother supply chain operations.
Ensuring LNG Supply Stability
By storing large LNG reserves, FSUs help guarantee energy supply stability in a region. This is especially important for countries that heavily rely on LNG imports.
FSUs can act as strategic reserves, providing energy security and reducing vulnerability to market fluctuations or geopolitical crises.
Expanding LNG Access to New Markets
FSUs allow countries to import LNG in smaller quantities without building onshore terminals. Investing in FSUs enables countries to quickly access natural gas at relatively lower costs.
These facilities also help balance the supply chain and provide more flexible supply options, expanding access to new markets.
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What are the Advantages of FSUs Compared to Onshore Terminals?
While onshore terminals are critical permanent infrastructures, FSUs offer several advantages that make them an increasingly popular solution.
Key advantages of FSUs include:
- Rapid deployment: Can be operational faster than onshore terminals.
- Lower cost: More cost-efficient CapEx compared to onshore terminals.
- High mobility: Can be relocated to different locations as needed.
FSUs are not replacements for onshore terminals or FSRUs but complementary units. They expand LNG access and accelerate the global energy transition.
With all these benefits, FSUs have proven to be a game-changer, delivering maximum impact through smart and agile solutions.
References:
- NGI. Accessed 2025. What is a Floating Storage Unit (FSU)?
- ESDM. Accessed 2025. Strategic Rencana Strategis Direktorat Jenderal Minyak dan Gas Bumi Tahun 2020-2024
- Tank News International. Accessed 2025. Why Floating Storage Units (FSUs) are increasingly viable alternatives to onshore tanks
