MOL in Talks to Provide FSRU for Hong Kong Offshore LNG Terminal

Japanese sipping conglomerate Mitsui O.S.K. Lines (MOL) has signed a preliminary agreement to supply a Floating Storage and Regasification Unit (FSRU), as well as jetty operation and  maintenance services for the Hong Kong Offshore LNG Terminal Project on a long term contract.

The Hong Kong Offshore LNG Terminal Project will be located at the southern waters of Hong Kong and to the east of the Soko Islands.

MOL said it would use the 2017-built MOL FSRU Challenger, built by Daewoo Shipbuilding & Marine Engineering (DSME), for the job. The FSRU has a storage capacity of 263,000 m3, making it the largest FSRU in the world today. The vessel is currently employed on a mid-term charter for a project in Turkey, according to MOL.

Challenger is expected to enter into service at the terminal around the end of 2020 at the earliest after delivery and completion of commissioning.

“Discussions are ongoing to develop and reach a definitive agreement for the supply of the FSRU which will assist in improving the long-term energy security for Hong Kong as well as providing access to competitive natural gas supply from world markets,” MOL said.

In line with the project outline, the FSRU will distribute gas into two destinations in Hong Kong, the Black Point Power Station located at New Territories and Lamma Power Station located at Lamma Island.

The Hong Kong Offshore LNG Terminal Project is being developed to support the Hong Kong Special Administrative Region (HKSAR) Government’s target of generating about half of Hong Kong’s electricity from natural gas from 2020 onward to improve air quality and environmental conditions in Hong Kong.

The government is currently reviewing the environmental impact assessment study for the project.