MOL Signs FSRU Charter Deal

Japanese shipping transport company Mitsui O.S.K. Lines (MOL) has signed a charter deal with Hong Kong LNG Terminal Limited for a floating storage and regasification unit (FSRU).

The FSRU would be used for the Hong Kong Offshore LNG Terminal Project (HKOLNG Project), which is a joint venture established by  Castle Peak Power Company Limited (CAPCO) and The Hongkong Electric Co., Ltd. (HK Electric).

The FSRU vessel will be used for receiving, storing, and regasifying LNG for the supply of natural gas to CAPCO and HK Electric for power generation through two separate subsea gas pipelines.

MOL will also be responsible for providing operations and maintenance services for the FSRU vessel and the offshore LNG terminal.

MOL is one of the world’s largest shipping operators and manages one of the biggest fleets of LNG vessels in the industry. It has been involved in numerous offshore LNG terminal projects worldwide since 2009.

CLP Power Managing Director T K Chiang said, “We conducted a competitive tendering process for the provision of an FSRU vessel, together with the operation and maintenance of the offshore LNG terminal. This time charter party and services agreement is an important milestone for the project as it will enable us to receive natural gas from different markets across the globe at competitive prices and enhance the security of our natural gas supply in the long-run to the benefit of our customers and all of Hong Kong.”

HK Electric Managing Director Mr Wan Chi-tin said, “The FSRU vessel, together with the jetty and submarine pipelines, will enable us to have access to diverse gas sources for cost-competitive LNG supplies. In addition, the new LNG terminal project will provide HK Electric with greater flexibility and a new channel for Lamma Power Station to obtain natural gas, easing the pressing need to enhance the security of gas supply.”

In support of the Government’s policy to reduce carbon intensity and increase the proportion of natural gas used for power generation by 2020, CLP Power and HK Electric first launched a study into building an offshore LNG terminal in 2016. The terminal will enhance and diversify Hong Kong’s natural gas supply sources, and ensure a more reliable supply of fuel at competitive prices.