Mitsui O.S.K. Lines, Ltd. (MOL) has entered into a significant long-term time charter agreement with Singapore LNG Corporation Pte. Ltd. (SLNG) for Singapore’s first Floating Storage and Regasification Unit (FSRU). The partnership, officially launched on October 23, 2024, aims to bolster Singapore’s energy infrastructure by providing a stable supply of natural gas. The FSRU will be constructed at Hanwha Ocean Co., Ltd. in South Korea, and MOL will oversee its ownership, management, and operations upon delivery.
Key Role of the FSRU in Singapore’s Energy Supply
The FSRU will be moored at Jurong Port, where it will function as a floating facility for receiving, storing, and converting liquefied natural gas (LNG) into its gaseous state, subsequently sending it to shore. As approximately 95% of Singapore’s electricity is powered by imported natural gas, the FSRU is expected to play a crucial role in maintaining energy stability and meeting the country’s growing energy needs.
This project not only strengthens MOL’s FSRU portfolio but also aligns with Singapore’s commitment to energy security. MOL has extensive experience operating FSRUs in other regions, including Turkey, Hong Kong, and Indonesia, and the company recently expanded its FSRU business with a new project in Poland.
Alignment with MOL’s Sustainability Vision
The FSRU initiative is aligned with MOL’s “BLUE ACTION 2035” management plan and Environmental Vision 2.2, which focus on decarbonization and sustainable infrastructure. As part of its broader strategy, MOL aims to expand low-carbon businesses by leveraging innovative technologies and solutions.
With sustainability as a core focus, the project addresses key areas such as:
- Safety & Value – Providing secure infrastructure through safe transportation and energy services.
- Environmental Conservation – Supporting global environmental efforts by using efficient marine technologies.
- Human & Community Development – Contributing to the growth of people and communities.
- Innovation in Marine Technology – Enhancing the development of advanced maritime solutions.
The FSRU will feature:
- Length: 298.8 meters
- Beam: 51.0 meters
- LNG Storage Capacity: 200,000 m³
- Regasification Capacity: 5 million tonnes per annum
- Shipyard: Hanwha Ocean Co., Ltd.
- Scheduled Delivery: 2027
This strategic project exemplifies MOL’s efforts to diversify beyond traditional shipping by focusing on energy infrastructure and technological innovation, cementing its role as a key contributor to sustainable logistics and global energy security.
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Source: MOL
