May 4 2020
Composite material shipbuilding company, Submarinergy, is about to deliver the first batch of 5000-ton crude floating storage units(CFSU) in May. These CFSU are used as offshore storage tanks.
Image Credit: Business Wire
As crude oil price dropped to -37 USD per barrel, owning a 5000-ton CFSU, does not only get the owner 35000 barrels of crude oil worth 3.5M USD for free, it also gains the owner 1.3 M USD cash for storing the crude oil.
As the world runs out of oil storage tanks, it's become difficult for many oil traders to take advantage of this opportunity because of the current global shortage of storage facilities.
The CFSU by Submarinergy will provide oil companies and traders opportunity that helps them take advantage of the current negative price of oil and a better storage option.
Submarinergy was founded by a group material scientist who invented composite materials that are 25 times stronger than the same weight of steel. The early application includes dozens of 1000 ton crude tanks.
The non-metal material building Submarinergy lasts more than 50 years in crude and seawater environment.
Submarinergy develops the technology to complete building CFSU in a few weeks, which is shorter compare to 3 years of building time of VLCC storage.
At the moment, Submarinergy is discussing with DNV GL and CCS to ensure smooth and safe ocean navigation.
Submarinergy is also offering 5-year leasing and purchase contracts with its clients.
The company is also planing its 40,000-ton CFSU delivery.