The deal is for a newbuild floating storage and regasification unit that will be operated by Singapore LNG Corporation
[SINGAPORE] Mitsui OSK Lines (MOL) has signed a project finance agreement with a banking syndicate for a newbuild floating storage and regasification unit (FSRU) in Singapore.
The FSRU – a type of ship that receives and stores liquefied natural gas (LNG) offshore, before regasifying and then sending it back to shore – will be operated by state-owned LNG terminal operator, Singapore LNG Corporation as the city state’s second LNG terminal.
The banks involved in the agreement are DBS, OCBC, Standared Chartered Bank (Singapore), Japan Bank for International Cooperation and Mitsubishi UFJ Financial Group, said MOL on Tuesday (Dec 23).
The project was announced in October 2024 and marks the first deployment of an FSRU in Singapore, which relies on imported natural gas for around 95 per cent of its domestic power generation.
The Japanese shipping firm said that the project aligns with its vision to meet evolving societal needs such as environmental conservation through technology and services. In line with this vision, MOL operates a range of social infrastructure businesses focused on the shipping industry, it added.
Beyond this, the project is in line with MOL’s management plan, Blue Action 2035, which promotes the expansion of shipping and non-shipping businesses.
It also aligns with the company’s strategy of expanding low-carbon and decarbonised business through a “concerted group-wide effort”, as outlined in its roadmap, the MOL Group Environmental Vision 2.2.
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