Mitsui O.S.K. Lines (MOL) has announced it has entered an agreement with Singapore LNG Corporation for a Floating Storage and Regasification Unit (FSRU), contributing to a stable supply of sustainable energy in the world's largest and most important bunkering port.

MOL signed the agreement with Singapore LNG Corporation Pte. Ltd., Singapore's state-owned LNG terminal operator, on a long-term time charter contract for one new building, FSRU.

The FSRU will be built at Hanwha Ocean Co., Ltd. in South Korea. After delivery, MOL will own, manage, and operate the FSRU.

 [Source: MOL]

MOL said in the announcement that the FSRU will be moored at the Jurong Port in Singapore and will play a central role in receiving, storing and regasifying LNG and sending gas to shore.

"This first FSRU to be introduced in Singapore is an infrastructure project that will contribute to a stable supply of energy for the country, where about 95% of domestic power generation is fueled by imported natural gas," MOL said, citing its accumulated experience operating FSRUs in diverse regions and environments, including Turkey, Hong Kong, and Indonesia.

"MOL has been developing its FSRU business around the world to meet the needs of customers who want to diversify their procurement of LNG and ensure a stable supply of energy, and it has recently entered into an agreement on an FSRU project in Poland," it said.

The FSRU—which measures 298.8 meters (L), 51.0 meters (Beam)—has a 200,000m3LNG storage capacity and a regas discharging capacity of 5 million tonnes per annum. It is scheduled for delivery in 2027.

FSRU is a floating facility capable of receiving and storing LNG offshore, regasifying it, and sending it to shore.

MOL noted that FSRUs have the advantage of lower costs and shorter construction periods compared to constructing storage tanks and regasification facilities onshore.