Mitsui O.S.K. Lines (MOL), a global shipping giant based in Tokyo, has secured a long-term time charter contract for Singapore’s first-ever Floating Storage and Regasification Unit (FSRU). The deal was signed with Singapore LNG Corporation, the country’s state-owned LNG terminal operator, marking a significant step in ensuring a stable energy supply for Singapore.
This cutting-edge FSRU, set to be built by Hanwha Ocean Co. in South Korea, will be moored at Jurong Port upon delivery. It will serve as a vital infrastructure component for the island nation, playing a key role in receiving, storing, and regasifying imported LNG, which accounts for around 95% of Singapore’s domestic power generation needs. Essentially, the FSRU will act as a floating energy gateway, ensuring a steady flow of natural gas to fuel the nation’s power plants.
FSRUs are becoming increasingly popular in the energy world because they offer faster setup times and lower costs compared to traditional onshore regasification facilities. MOL has been a major player in this space, with projects spanning Turkey, Hong Kong, and Indonesia. The company’s experience and expertise in operating FSRUs in diverse environments have earned them a reputation as a trusted partner for energy infrastructure projects. Recently, MOL expanded its reach further by entering into an agreement for an FSRU project in Poland.
At 298.8 meters long with an LNG storage capacity of 200,000 cubic meters, this FSRU is a technological powerhouse. It will have the capacity to discharge up to 5 million tonnes of LNG annually, positioning Singapore to diversify its energy sources while maintaining a reliable and cost-effective energy infrastructure. Delivery of the unit is slated for 2027, with operations set to commence shortly thereafter.
The project aligns with MOL’s broader corporate vision, “BLUE ACTION 2035,” and the MOL Group Environmental Vision 2.2, both of which aim to expand the company’s low-carbon and decarbonized business segments. MOL is leveraging its collective strengths to meet evolving social needs, particularly in environmental conservation. This FSRU project is not just about supporting Singapore’s energy stability but is also part of MOL’s larger commitment to creating innovative, sustainable solutions for the future.
MOL’s long-term focus on FSRU development fits neatly into Singapore’s growing push for energy security, helping the country stay ahead in a rapidly changing global energy market.
