Deal Signed for India's First FSRU Newbuilding

Mitsui O.S.K. Lines (MOL) has signed an agreement with Swan LNG Private Limited for the long-term operation of a floating, storage and regasification unit (FSRU) and floating and storage unit (FSU) in Gujarat, India. This will be India's first newbuilding FSRU project.

The units will serve as the core receiving facilities in an LNG terminal to be developed by Swan Energy. The FSRU is being ordered and owned by Swan Energy through its subsidiary, and MOL has an option to participate in joint ownership. The option is exercisable any time before the delivery of the FSRU.

Additionally, MOL will invest in Swan LNG and participate in many facets of the project as technical partner. The terminal facilities will include the FSRU (tank capacity: 180,000m3), the FSU (tank capacity: 135,000m3 -145,000m3, breakwater, jetty mooring and onshore facilities with an LNG receiving capacity of 5.0 million tons per year.

The terminal is slated to start operation in early 2020.

FSRUs are drawing attention as a solution for flexibility and mobility in the LNG supply chain. MOL says it plans to promote its FSRU business. The company is already one of world's largest LNG carrier operators and the only Japanese FSRU owner and operator.