Vopak Pulls Out Of FSRU Investment Deal

Credit: CHUTTERSNAP/Unplash

Vopak has abandoned plans to invest in a floating storage and regasification unit (FSRU) in Hong Kong, says an article published on Splash.

Project portfolio update

Under a deal from December 2021, Vopak had the option to take a stake in the vessel-owning company of the 2017-built MOL FSRU Challenger, to be renamed Bauhinia Spirit.

However, in its latest LNG project portfolio update, the company said it had “decided to no longer pursue the acquisition of 49.99% of the vessel-owning company of MOL that owns FSRU.” 

Reduced attractiveness

Vopak has been working with MOL on developing and commissioning the Hong Kong FSRU LNG terminal. Although the commercial start is expected later this year, “the delay of the project has resulted in reduced attractiveness and made Vopak decide not to make use of the share right,” the company noted.

A joint venture

The world’s largest FSRU, with a storage capacity of 263,000 cu m of LNG, arrived off Hong Kong last week.

The unit, upgraded at Keppel Shipyard in Singapore, will work under a long-term contract with Hong Kong LNG Terminal, a joint venture between the two utility companies in Hong Kong, the Castle Peak Power Company (CAPCO) and the Hongkong Electric Company.

Involved in commissioning

Vopak added that it would remain involved in the commissioning of the terminal and would continue to provide support to the operation of the terminal as required.

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Source: Splash