Japan’s Mitsui & Co. has formed joint venture with gas shipping company BW Group Limited to own the Floating Storage and Regasification Unit (FSRU) BW Integrity.
Mitsui & Co. has purchased a 49% share in BW Integrity, while BW continues to own a 51% share in the vessel. In line with the deal, BW will continue to provide commercial and technical management services for the vessel.
The deal is expected to close as soon as the payment for the acquisition is completed, Mitsui said.
This is the first FSRU project for Mitsui, and the first project for a Japanese company to participate in the LNG receiving infrastructure business in Pakistan.
BW Integrity is currently in Port Qasim on a 15-year charter to PGP Consortium Limited (PGPC), to provide LNG regasification services at Pakistan’s second LNG import terminal. The demand for imported LNG in Pakistan is expected to grow steadily and reach 20 million tons per annum by 2022.
“BW and Mitsui have a long history of close cooperation in many business areas and having Mitsui as a JV partner is a special relationship on which we hope to build for many years to come,” BW Group’s CEO Carsten Mortensen said.
“The opportunity for us to enter the FSRU business is a very big step forward for our future business strategy. As an LNG receiving/regasification base project is an extension of the LNG shipping business area, it is important to acquire know-how of the FSRU business and to maintain effective relationships with partners like BW. I am convinced that this partnership will also greatly contribute to Mitsui &Co.’s gas sales strategy. I would like to continue to expand this business area firmly in the future,” Mitsui & Co.’s Chief Operating Officer of the Integrated Transportation Systems Business Unit II, Takeshi Setozaki said.
BW’s first FSRU, the BW Singapore, is currently involved in a five-year contract providing LNG regasification and storage services in Sumed, Egypt.
BW has a fleet of over 150 vessels, including 21 LNG carriers and FSRUs including newbuildings.
Just two weeks ago, BW LNG welcomed two new MEGI LNG carriers into the fleet, BW Tulip and BW Lilac.
The identical sisters were named at Korean shipbuilder Daewoo Shipbuilding and Marine Engineering (DSME) two weeks ago and are the first two-stroke propulsion vessels in the fleet.