Japanese shipping giant Mitsui O.S.K. Lines (MOL) has teamed up with Düsseldorf-based Uniper SE to develop a Floating Storage and Regasification Unit (FSRU) at Uniper site in Wilhelmshaven, Germany.
The FSRU has a planned send-out capacity of 10 bcm/a and an LNG storage capacity of 263,000 cbm. As informed, the facility could be in operation as early as the second half of 2022.
Under the terms of the deal, MOL intends to own, operate and finance the FSRU, while Uniper will serve as the project developer, working closely with the relevant authorities to receive the permits for the operation of the facility and to gather interest for regasification capacity from additional market participants.
Wilhelmshaven has been chosen as it is the only German deep-water port and can be reached without any tidal constraints. In addition, there is already required infrastructure in place. The port is closely located to the existing pipeline and gas storage infrastructure.
MOL said that the FSRU will be designed to allow for the loading of small scale barges to enable the use of LNG as marine fuel. Further, onward transportation of LNG on trucks will be possible.
The project is Germany’s first LNG terminal which is aimed at strengthening the security of gas supply in Germany and diversify gas supplies, which is also being pursued at the political level in Germany and Europe.
In addition to the agreement in respect of the FSRU Wilhelmshaven, Uniper and MOL entered into a binding transportation agreement.
Under the agreement MOL will provide Uniper with shipping capacity equivalent to a 180,000 m³ LNG carrier. The agreement will commence in December 2020.
Uniper said it intends to use the additional shipping capacity to optimize LNG volumes sourced from Freeport, U.S., and to further leverage its expanding LNG trading activities.
Already in 2015 Uniper contracted approx. 0.9 mtpa of US LNG exports. The supply contract has a duration of 20 years.