Singapore To Welcome Its First-Ever FSRU Under MOL's Long-Term Contract

Floating Storage and Regasification Unit — Image Credits: MOL

Mitsui O.S.K. Lines, Ltd. (MOL) has signed a long-term time charter deal with Singapore LNG Corporation Pte. Ltd. to launch the country’s first Floating Storage and Regasification Unit (FSRU).

The project, which will begin on October 23, 2024, aims to greatly improve Singapore’s energy security by ensuring an uninterrupted supply of natural gas.

The FSRU, which will be built by Hanwha Ocean Co., Ltd. in South Korea, is planned to be delivered in 2027.

Once operational, it will be moored at Jurong Port. It will perform critical roles like receiving, storing, and regasifying liquefied natural gas (LNG) before transporting it to shore for power generation.

Singapore, which now relies on imported natural gas for 95% of its electricity generation, will benefit from this floating facility as part of its long-term energy plan.

MOL has experience in the FSRU industry in multiple regions, successfully managing similar units in Turkey, Hong Kong, and Indonesia.

The company has stated that this project complies with its global efforts to provide customers seeking diverse LNG procurement options and reliable energy sources. MOL is also involved in a similar FSRU project in Poland.

The FSRU in Singapore will be 298.8 metres long, 51 metres wide, and capable of storing 200,000 cubic metres of LNG. It will be able to regasify and discharge 5 million tons of LNG annually.

MOL has said that this initiative is part of its “BLUE ACTION 2035” management plan, which focuses on expanding non-shipping businesses and developing sustainable infrastructure projects.

It also coincides with the company’s environmental goals, as stated in the “MOL Group Environmental Vision 2.2,” which aims to promote low-carbon and decarbonized solutions via new technology.

FSRUs provide many benefits over traditional onshore facilities, including reduced costs and faster construction times.

The introduction of the FSRU will strengthen Singapore’s energy infrastructure and ensure flexibility in LNG supplies.

Reference: MOL

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