Japanese shipping company Mitsui O.S.K. Lines has signed agreements with Swan LNG for a stake in liquified natural gas (LNG) receiving terminal project in India.
As stipulated in the deal, MOL will be taking care of the long-term operation/maintenance of a floating, storage and regasification unit (FSRU) and provision and long-term operation/maintenance of a floating and storage unit (FSU) that will serve as the core receiving facilities in an LNG terminal to be developed by Swan Energy Limited in Gujarat, India.
The main facilities of the terminal, to be located in Jafrabad, Gujarat State, will comprise a FSRU tank of 180,000cbm capacity and a FSU of 135,000cbm -145,000 cbm capacity in addition to a breakwater, jetty mooring and accompanying onshore facilities.
Moreover, MOL said it would invest in Swan LNG and participate in “many facets” of the project as a technical partner. The terminal, with a projected capacity of 5 million tons a year is slated to start operation in early 2020.
The FSRU serving this project is being ordered and owned by Swan Energy through its subsidiary, and MOL has an option to participate in the FSRU joint ownership. The option is exercisable any time before the delivery of the FSRU from South Korea’s Hyundai Heavy Industries (HHI), MOL said.
The move is in line with MOL’s aspirations to promote the FSRU business and greater presence in the LNG market, being one of the world’s largest LNG carrier operators and the only Japanese FSRU owner and operator.
As explained, the deal fits within MOL’s initiatives to “pursue vertically integrated businesses that are not limited to transportation in the LNG business,” in addition to the expansion of the LNG business in the growing Indian market.
This will be India’s first newbuilding FSRU project.