Upon commencement of operations, planned for the first quarter of 2020, the facility would be the nation’s first-ever newbuild floating, storage and regasification LNG facility, according to developer Swan Energy.
Mitsui OSK Lines (MOL) has signed an agreement for the long-term operation and maintenance of a floating, storage and regasification unit (FSRU) for liquefied natural gas (LNG) and the long-term operation and maintenance of a floating storage unit for an LNG terminal being developed by Swan Energy in India, MOL confirmed Sept. 1.
Upon commencement of operations, which is planned for the first quarter of 2020, the facility would be the nation’s first-ever newbuilding FSRU project, according to Gujarat, India-based Swan Energy.
As for why Japanese transport company MOL is investing in the project, it says that it fits an initiative to “pursue vertically integrated businesses that are not limited to transportation in the LNG business,” in addition to expansion of the LNG business in the growing Indian market.
“FSRUs are drawing attention as a solution for flexibility and mobility in the LNG supply chain,” the company said in a statement. “MOL is always ready to move assertively into progressive and creative business fields and contribute to the growth of the LNG business.”
The plan is for MOL to promote the FSRU business as one of world’s largest LNG carrier operators and the only Japanese FSRU owner and operator.
Under the terms of the agreement, MOL has an option to participate in the joint ownership of the FSRU project, which was ordered and owned by Swan Energy through a subsidiary, Swan LNG.
MOL said it’s option is exercisable any time before the delivery of the FSRU at shipyard, and that it will invest in Swan LNG and participate in many facets of the project as a technical partner.
MOL invests in LNG terminal project in India
