499
1 INTRODUCTION
In June 1979, the first accident involving an LNG
transporter El Paso Paul Kaiser took place in
Algeciras,Spain.Itranagroundwith125,000m3LNG
onboard.Adoublehull
5
andaspecificconstruction
of the tanks prevented a cargo leakage and
environmental pollution. The rescue sister ship El
PasoSonatrachsalvagedElPasoPaulKaiser’scargo.
Itwasthefirsttimealiquifiednaturalgascargohad
beentransferredfromshiptoship.Thisoperationwas
thefirststeptowardsregularreloadingofLNGatsea.
The cargo was transferred at – 162 degrees Celcius
and safely delivered to
a destination port. The

5
Double‐hull‐istherequirementfromMARPOLConven‐
tion.Thedoublehullrequirementwasadoptedin1992, fol‐
lowingtheErikaincidentoffthecoastofFranceinDecem‐
ber1999.InApril2001,IMOadoptedarevisedphase‐out
scheduleforsinglehulltankers,whichenteredintoforceon
1September2003(the2001amendmentstoMARPOL
73/78).
Technology used for these kinds of operations was
developed after 1979. Shipyards built Floating
Production Units used for mining and production
purposes.
In 2007, the shipping industry concerned with
transportinggasfreightstartedusingFSRUs(Floating
Storage Regasification Units). These units were
multifunctional. Firstly, they could be used for
storage. Secondly,
they could store the cargo from
larger units and could also transfer LNG to other
ships.Moreover,FSRUallowedforregasifyingliquid
gasanddeliveringitdirectlyintopipelines.
6
The latest technological solution related to LNG
transportation and regasifying at sea is the LNG
bunkering barge which might be incorporated in

6
FSRU‐floatingstorageandregasificationunits(FSRUs),
hastheonboardcapabilitytovaporizeLNGanddeliver
naturalgas,regasifiedLNGatpipelinepressureatflow
rates.
What is the Real Issue with Floating Storage and
Regasification Units? Regulations Related to the FSRU
Implementation Process in the Baltic Sea
A.Koska‐Legieć
UniversityofGdańsk,Gdańsk,Poland
ABSTRACT:The aim of this articleisto dispel any nomenclatural confusionrelated to the notion ofFSRU.
SometimesFSRUsareclassifiedasshipsorvessels;sometimesasstationaryunits.Thearticlewillattemptto
explaininwhichcaseFSRUsmaybeclassified
asships.Thisarticledescribesoneofthemostpersistentlegal
problemsinPolishmaritimelaw,whichistheFSRUimplementationintheBalticSea.TheapplicationofFSRU
solutionswasanalysedinrelationtoLNGmaritimetransport.Thisanalysisisconcernedonlywithafragment
ofwidertheoreticalconsiderationsabout
theplacementofthedefinitionoftheshipindifferentnationallegal
systemsaswellastheimportanceoftranslationandcorrectunderstandingofthewordsdenotingtheshipor
thevessel.
http://www.transnav.eu
the International Journal
on Marine Navigation
and Safety of Sea Transportation
Volume 12
Number 3
September 2018
DOI:10.12716/1001.12.03.08
500
Polish ports. It would enable using the capacities of
Polish Ports to the full without being restricted by
shallowwatersandcablesinstalledat the bottomof
thesea.
The first LNG terminal in Poland, placed in
Świnoujście was opened in 2015. The plan for
diversification of the
energy sources brought about
the need for finding a new solution for the LNG
industryinPoland.IntheAuthor’sopinion,themost
profitable option woud be incorporating Floating
StorageRegasification Units into the LNG transport.
Butitshouldbenotedthattherearemanyadvantages
ofthis idea. Firstly, the
cost of regasification on this
kindofunitislowerthanonaland‐based terminal.
Secondly, the matter of mobility and flexibility of
usage might be optimised, depending on the actual
demandforgasandcouldbecustomizedtothelocal
conditionsormarketrequirements.
Table1.MadebyEnergyMaritime Associatesin2017shows
theincreasingusageofFSRUinthelastdecadeandinthe
yearstocome.
_______________________________________________
YEARAMOUNTofFSRU
_______________________________________________
20082
20094
20105
20117
20127
20139
201414
201518
201622
201727
201835(forecast)
202040(forecast)
_______________________________________________
Technical development and the policy of
diversifying energy sources, prompts the search for
newsolutions.FSRUsprovideagreatopportunityin
thiscontext.TheFSRUismultifunctionalandcanbe
used in different ways proportionally to the actual
demand.TheproximityoftheterminalinŚwinoujście
provides numerous business opportunities.
Preparations to develop an FSRU unit in the Baltic
Sea‐ in the Gdańsk harbour, besides the obvious
financial aspect, requires an in‐depth analysis of all
typesoflegalregulations:international,regional(the
EuropeanUnion)andthelocalPolishlaw.Depending
on the adopted interpretation, legal regulations can
createopportunitiesorlimitthem.
AnalizyingtheFSRU theme, onecannoticethree
main questions to be considered. This article
compares the international conventions and Polish
regulationsandfocusesontheoreticalaspectsofusing
FSRUsintheBalticSea.
2 WHATTYPEOFINSTALLATION/EQUIPMENT
ITIS?
J.Łopuski noticed [3]
that international maritime
relationships allow us to distinguish following
aspects:
1 relationships among countries concerning
sovereignty over sea areas and sovereign rights
overthenaturalresourcesofthesea
2 safetyatsea,protectionofthema rineenvironment
andofthebiologicalresourcesofthesea
3 private‐ legal relationships
related to marine
activities
4 protectionofthelabouratsea
Thedefinitionoftheship(vessel)isrelatedtothe
areaofmaritimerelations.Asitwilldemonstratedin
thesubsequentsectionsofthisarticle,thedefinitionof
the ship bears significant implications for the
considerations regarding the implementation of
the
FSRUatsea.
Firstly, it should be indicated that The United
NationsConventionontheLawoftheSeaUNCLOS
1982
7
inarticle92specifiesthestatusofaship
8
flying
flag of the state. If an FRSU is classified as a ship/
vessel, the convention connects several duties of a
state,effectivelyexercisingitsjurisdictionandcontrol
in administrative, technical and social matters,
including keeping a register of ships. The
aforementioned aspects are connected with the first
areadistinguished
byJanŁopuski‐sovereigntyover
seaareas.
An FSRU as a unit is used for transportation of
LNG. The shipment of dangerous goods should
complywithnumerous safetyand security
regulations. The UNCLOS Convention regulates the
responsibilityofthestateforensuringsafety:
“Every State shall take such measures for ships
flyingitsflagasarenecessarytoensuresafetyatsea
withregard,interalia,to:
(a)theconstruction,equipmentandseaworthinessof
ships;
(b)the manning of ships, labour conditions and the
training of crews, taking into account the
applicableinternationalinstruments;
(c)the use ofsignals, the maintenance
of
communicationsandthepreventionofcollisions.”
9
These general regulations are being further
developed in specific conventions. Construction,
equipmentandseaworthinessconditionsareincluded
intheInternationalConventionfortheSafetyLifeat
Seaof1974–SOLAS
10
.
InRegulation2,under“Definitions”thereareclear
definitionsoftheshipandthecargoship:
“Forthepurposeofthepresentregulations,unless
expresslyprovidedotherwise:(…)(g).Acargoshipis
anyshipwhichisnotapassengership.

7
Dz.U.2002r.Nr59,poz.543zał.
8
Article92“Statusofships1.Shipsshallsailundertheflag
of one State only and, save in exceptional cases expressly
providedforininternationaltreatiesorinthisConvention,
shallbesubjecttoits exclusivejurisdictiononthehighseas.
Ashipmaynotchangeitsflagduringa
voyageorwhileina
portofcall,saveinthecaseofarealtransferofownership
orchangeofregistry.
A ship which sails under the flags of two or more States,
usingthemaccordingtoconvenience,maynotclaimanyof
thenationalitiesinquestionwithrespecttoanyotherState,
andmaybeassimilatedtoashipwithoutnationality”.
9
Article94
10
Dz.U.z1984r.Nr61,poz.318i319,
Dz.U.z1986r. Nr35,poz.177
Dz.U.2005r.Nr120,poz.1016
501
(h) . A tanker is a cargo ship constructed or
adaptedfor the carriage in bulk of liquidcargoesof
aninflammablenature.“
AnFSRUcouldberegardedasacargoshiporasa
tanker because it can be used for carrying the
liquefiednaturalgasinthis
case.However,thereare
someexceptionsfromRegulation3“Exceptions”“(a).
The present regulations, unless expressly provided
otherwise, do not apply to: (…) (iii) Ships not
propelledbymechanicalmeans.“AfixedFSRUunit
withoutanengine is not the ship in the meaning of
theSOLASConvention.
AsaresultInternationalGasCode(IGCCode)–a
part of SOLAS referring to the construction and
buildingrulesforgascarrierswouldnotbeappliedto
anFSRU
11
.
On1stJanuary 2017International Code of Safety
forShipsUsingGasesorOtherLow‐FlashpointFuels
(IGFCode)
12
cameintoforce.ThisCodeincludedthe
rules of LNG usage as a fuel, best practises and
procedures of installation and infrastructure
controlling, service and crew training in safe
exploitationoftheship.
InternationalSafetyManagementCodeisthemost
important act in the aspect of appropriate and
efficient management
of ships, cargo transport and
crew. The Code consists of the suggestions for
building effectiveness in procedures and plans in
emergency situations, safety and environmental‐
protectionpolicy.Additionally,theCodespecifiesthe
shipping company, the crew and the means which
enablebothpartiestoachievethebestresults.
The Code ensures
effective procedures and plans
in emergency situations, safety precautions and
environment protection policies. Moreover, it gives
clear guidelines as to the responsibility of the
company to the crew and vice‐versa with an aim of
attaingthebestpossibleoutcomes.Inthisrespect,the
most important element is the achievement
of the
acceptable risk level through risk management.
13
Effectivemanagementisveryimportantindangerous
goodtransportlikeLNG‐theFSRUscargo.
Thenextregulationwhichshouldbementionedis
Fire Safety System (FSS Code).
14
This is a code
functioningasapartoftheSOLAS.Itdefinestherisks
relatedtothefire,necessaryextinguishingsystemsfor
the ship and equipment for the crew. The most
important element in this Code is diversification
relatedto thetypeof theship.AccordingtotheFSS
Code,gascarriershavetobeequippedwithapowder
coating system, gas detectors and special personal
protective equipment. It would be especially
important for FSRUs, because besides the cargo

11
TheInternationalCodeoftheConstructionandEquip‐
mentofShipsCarryingLiquefiedGasesinBulk(IGCCode),
adoptedbyresolutionMSC.5(48),hasbeenmandatoryun‐
derSOLASchapterVIIsince1July1986.
12
TheInternationalCodeofSafetyforShipsusingGasesor
otherLow‐flashpointFuels(IGFCode)wasadopted bythe
MaritimeSafetyCommittee(MSC)atitsninety‐fifthsession
inJune2015,byresolutionMSC.391(95)
14
TheFireSafetySystemCode(FSScode)cameintoforce
onJuly2002afterMarineSafetyCommittee(MSC)adopted
itin73sessionandbecamemandatorybyresolutionMSC
99(73)onchapterII‐2ofSOLAS.
operations these units have the capacity for storing
LNG, conducting regasification processes and
transferingacargodirectlytothepipeline.
Strict and clear regulations for navigation create
safety on the sea. Marine traffic is highly regulated
and the world wide maritime trading respects the
rules of International Regulations for Preventing
Collisions
at Sea, 1972 COLREG. W. Rymarz [7]
observedthat“theobjectiverangeoftheConvention
isverylarge,becauseitcallsto“allvessels”andthe
meaningofthewordvesselisimpliedbyRule3.
Rule3Generaldefinitions:
“(a)The wordʺvesselʺincludeseverydescription
of watercraft, including
non‐displacement craft and
seaplanes,usedorcapableofbeingusedasameans
oftransportationonwater.”
15
It is not important if the unit is mechanically
propelledbutwhatkindofactivityitisusedforasa
meansofwatertransport.
Thisconclusionimpliesincidentsconnectedwith
thetrafficatseawhich arecollisions.Suchaccidents
could take place not only when moving objects are
involved.
There is a high risk of an accident with a
vessel restricted in her ability to manoeuvre or be
moored.
As J.Łopuski [3] indicated, “protection of the
marineenvironment”isthesecondaspectofactivity
connectedwithsafetyatsea.
Thegroundfortheinternationallegal orderinthe
areaofenvironmentalprotectioninmaritimetradeis
MARPOL – created as a response to the Torrey
Canyoncaseandtheoilpollutioncausedbythatship.
The International Convention for the Prevention of
PollutionfromShips,1973.Nowadays,theMARPOL
Convention
regulates all of the sources of pollution
from ships and risk for the maritime environment –
meaningthesea,thecoastandtheairspace.
Article 2 – presents the conceptual net and also a
definitionofthe“ship”.
Itisavehicleorameansoftransportused“for
the
purposesofthepresentConvention,unlessexpressly
providedotherwise:
4).ʺShipʺmeansavesselof anytype whatsoever
operating in the marine environment and includes
hydrofoil boats, air‐cushion vehicles, submersibles,
floatingcraftandfixedorfloatingplatforms.”
This definition encompasses not only the units
withanengineandthe
abilitytomoveindependently
but also floating crafts and platforms. Hence, this
particulardefinitionalsocoversFSRUunitswhichare
permanentlyfixed.Everyobjectwhichisfunctioning
aspartofthemaritimesystemisregardedasaship.
It should be noticed that the definition of the
“vessel” from the
COLREG Convention and the

15
Dz.U.1977r.Nr15,poz.61zał.
Dz.U.1984r.Nr23,poz.106
502
definitionofthe“ship”fromMARPOLhavethesame
semanticrange.
The majority of accidents and environmental
threatsiscreatedbyhumanerrors[6].Tominimisethe
risk of these errors occurring International
Convention of Training Standards, Certification and
WatchkeepingforSeafarerswasconstitutedin1978.
This Convention and its provisions
define the
structureofbasicskillsrequiredofseafarerswithan
emphasisontransportingdangerousgoods,including
LNG.
16

Soastocreatetheexactpictureoftheregulations
applied to the FSRU, the definition from the
International Conventions should be compared to
Polishlaw.Thefirstenactment–TheMaritimeCode
Act‐isthefirstlegaldocumenttobeconsidered.
The definition of the “ship” as it appears
in The
MaritimeCodeActgoesasfollows:
Art.2
“A sea‐going vessel is any floating structure
appropriated for, or employed in, navigation on the
sea.”[2]
InviewoftheaforesaiddefinitionanFSRUisthe
shipasitisunderstoodinPolishlaw.Itisnotrelevant
whether
itisequippedwithanengineorwhatkindof
activityitisusedfor.InPolishmaritimelawthereisa
second, more extend definition of the marine trade
vessel.Itgoesasfollows:
Art.3par2
“Merchantsea‐goingvesselsaresea‐goingvessels
appropriatedtoor
employedinthebusinessactivity,
especially:carriageofcargoorofpassengers,forsea
fisheriesorfortheexploitationofotherwealthofthe
sea, for towage or salvage of sea‐going vessels,
recovering property sunk in the sea and sourcing
mineralsupplieslocatedundertheseabed.”
Adifferentconceptof
theship/vesselis given by
The Maritime Safety Act in article 5. This particular
enactmentdefinesthevesselas:
Art.5
“Whenevertheenactmentspeaksof:
1) “A vessel is any type of the floating structure
appropriated for, operating in the marine
environment. This definition also includes hydrofoil
boats, air‐
cushion vehicles, submersibles, floating
craft and floating platforms unless the international
conventionstipulatesotherwise”.
The aforementioned definition includes more
structuresthanmerelyvessels.Forexample,itcovers
floating rigs in the meaning of The Maritime Code
Act. It means that every fixed FSRU is a vessel in
accordancewiththeenactment
butitisnotavesselas
itisdefinedtheCode.

16
Theregulationsaboutspecialtrainingofthecrewonthe
gas carriers associated Code enter into force on 1 January
2012, with a five‐year transitional period until 1 January
2017 as the “Manila Amendments” were adopted at a
Diplomatic Conference in Manila, the Philippines, held in
June2010.
TheMaritimeSafetyEnactmenttakesintoaccount
safety and security issues of the construction and
equipmentofships.Additionally,thisenactmentalso
refers to inspections, qualifications and composition
ofthecrewaswellassafesailing and life saving at
sea.
Another issue is the place of the international
conventions in
our legal system. In the Polish
Constitutionthereisacatalogueofthelegalsources
listedin the appropriate sequence. The international
agreements are universally binding law after the
ratification. The procedure is impossible in case of
collision with Constitution. Following the rule of
incorporation,theentireinternationalconventionhas
beenintegratedwiththePolishlegalsystem.Inview
ofthisrule, allregulations aredirectlyusedand the
internal regulations are the complementation [4]. In
accordance with the constitutional catalogue, the
definition of the FSRU is most important when
consideringitsplaceintheinternationallaw.
Thesecondquestionwhich
iscrucialfordefining
the status of FSRU is the matter of answering what
type of activity the FSRU is used for. As it was
mentionedabove,theFSRUisamultifunctionalunit.
It could be used to transport a cargo for instance
LNG.TheFSRUcanalsobeused
asastorageunitbut
primarily it can be used for regasification and
deliveryofgasdirectlytothepipeline.Insomecases
thefunctioningoftheFSRUandtheactivitytheunit
isusedfor,exertanimpactonthequalificationofthat
unit.
Whenitisusedfortransporting
acargoitwillbe
defined under Polish law as a merchant sea‐going
vessel. There are FSRUs which are permanently
connectedtotheseabedandinthisrespecttheunitis
threated as equipment for unloading the cargo,
regasification and sending the LNG to the offshore
infrastructureora
pipeline‐inthiscaseitwouldnot
beassumedasthemerchantsea‐goingvessel.Onthe
contraryitisaplatform.
Another mean of the word “floating” is
“seagoing”, the same as moving independently
propelled by an engine. Admittedly, it could also
mean “moved by a tugboat”. The translationof
The
MaritimeCodeActbyJanŁopuskisuggeststheword
“floating”. Following international conventions this
particular lexical item should be endowed with
severalmeaningsorhaveabroadmeaning.Therefore
theword“floating”seemstobeappropriate.
An FSRU could be any unit involved in regular
internationaltrade.Itcould
beafixedobjectwithout
anengine.Asfarasitsactivityisconcerned,anFSRU
couldberegardedasaship,storingfacilityormining
unit.
The crossing of these two question give us an
answer to the third one‐ which legal system
determinesfunctioningandoperationsofFSRUs.The
operations of FSRUs are strictly connected with
internationalsafetyandsecurityregulations.Whena
unit is classified as a ship or a merchant sea‐going
vesseltheinternationalmaritimeconventionswillbe
the ba sis for classification. Apart from legally –
binding conventions there are non‐ legal
recommendations and manuals. Safety
and security
procedures are recommendations created by non‐
503
governmentorganizationssuchasOCIMF,SGMFand
SIGGTO. These organization’s focuses on the LNG
businessandhaveformulatedexactrules ofpractise
precisely identifying the best practise based on
experience.
We deal with a completely different situation
when a unit is permanently fixed to the seabed and
usedasa
storagefacility.Inthiscasetheunitwillbea
partofenergyinfrastructuresoitwillbedefinedby
energylaw
17
.
The most important issue is that maritime safety
andsecurityregulationscreate a very effective LNG
structure together with non‐ legal recommendations
mentioned above. This system has prevented any
dangerous accidents with leakage of the cargo from
happeningordamage maytothe natural
environment. The recognition the FSRU as
a storage
facility exclude the application of the maritime
regulations. It raises doubts concerning the level of
safety.
3 CONCLUSIONS
Inthelightoftheseconsiderationsthereisadoubt,if
FSRUistobereferredasashiporfloatingunit.Itis
the ship whenever an FSRU moves
from point A to
point B carrying a cargo in accordance with the
SOLASconvention.WhenanFSRUhasnocapacityof
moving independently it is not the ship in the
meaning proposed by the SOLAS Convention‐ and
consequently – it is a floating unit. The similar
situation can be noticed
when an FSRU is a
regasificationfacilityorastorageunit.Inthiscase,it
isnottheshipinviewoftheSOLAS,butitistheship
in accordance with the COLREG and MARPOL
Convention.
AveryinterestingoptionariseswhenanFSRUis
permanently connected to the
pipeline. It would be
treatedasa piece ofequipment‐part of the port or
gasinfrastructure.
Tosumup,afterthecomparisonofthedefinitions
it can be concluded that the recognition of the legal
status of the FSRU depends on the activity and
functionalityoftheunit.TheFSRU
maybedefinedin
avarietyofway‐aship,floatingunit,storagefacility‐
asaresultitmayrisedifferentlegalimplications.
LITERATURE
[1]M.Dragun‐Gertner‐„Polskieustawodawstwomorskiea
prawomiędzynarodowe”StudiaIuridicaToruniensiaT.
2Toruń2002r.s.133
[2]The polish maritime code : Polish original with
translation into English and explanatory notes / transl.
andnotesprep.byJanŁopuski,RomanAdamski
[3]J.Łopuski, The role played
by international law in the
formationofmaritimelaw‐aretrospectiveviewontheturnof
the 20
th
century and in the era of globalisation, Revista
Europea de Derecho de la Navigation Maritima y
Aeronautica2000,nrXVI,s.289

17
Dz.U.2018.755t.j.zdnia2018.04.20
[4]J.Nawrot, Z. Pepłowska‐ Dąbrowska‐ „The notion of
‘ship”inthePolishLaw.Somereflectionsonthebasisof
research conducted for the purposes of the CMI
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