The Japanese shipping conglomerate Mitsui O.S.K. Lines, Ltd. (MOL) signed a project finance agreement for a newbuild floating storage and regasification unit (FSRU) to be operated by Singapore LNG Corporation Pte Ltd (SLNG) as Singapore’s Second LNG Terminal.
Shipping giant MOL sealed the deal with a banking syndicate-including the Japan Bank for International Cooperation (JBIC), Mitsubishi UFJ Financial Group (MUFG), DBS Bank (DBS), Oversea-Chinese Banking Corporation Limited (OCBC), and Standard Chartered Bank (Singapore) Ltd. (SCB).
According to MOL, the floating storage and regasification unit project marks the first deployment of an FSRU in Singapore, where the nation relies on imported natural gas for approximately 95% of its domestic power generation.
“This FSRU financing was made possible through the convergence of MOL’s mission to support customers in diversifying LNG procurement and ensuring a stable supply via FSRU projects; JBIC’s commitment to supporting the business expansion of Japanese companies in Asia; and the initiatives of JBIC, MUFG, DBS, OCBC, and SCB, which prioritize advancing the energy transition and contributing to decarbonization across the region,” the company’s notice said on Dec. 23.
