Crown LNG Holdings is partnering with IKM Engineering & Environmental Consultants to construct its floating LNG import terminal in Scotland’s Firth of Forth, north of Edinburgh.

The import terminal, based near Grangemouth, will be specifically designed to withstand harsh weather conditions, according to a joint statement from the companies released on Friday.

Crown LNG hopes a final investment decision (FID) can be made by late 2024, having already secured the engineering and construction agreement.

Swapan Kataria, CEO of Crown LNG, said: “With an existing presence in Grangemouth and extensive experience across water and energy infrastructure, [IKM has] the unique capability to support the development and completion of the project safely, effectively and efficiently.

She added that the partnership will help to “advance our efforts toward FID for this critical project and expand the UK’s energy security through enhanced access to reliable natural gas supplies”.

Many western nations have looked towards LNG as a more reliable energy source since the outbreak of the war in Ukraine in 2022 and the subsequent pivot away from Russian energy sources. The UK’s LNG imports increased by 74% in 2022 on the year.

Ian Maclachlan, IKM’s founder, said: “The project will provide a critical step in the transition to a low-carbon economy and provide energy, infrastructure and jobs both in Fife and Grangemouth.”

Crown will employ a floating storage regasification unit (FSRU) for the project.

FSRUs sit just off the shore and re-gasify LNG delivered by cargo. In the wake of the energy crisis caused by the Russia-Ukraine war, they have been the subject of increasing interest due to their flexibility and the relatively short time it takes to bring them online.