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    Japan's MOL Finalises Hong Kong FSRU Deal


The FSRU will distribute gas into two destinations in Hong Kong.

by: Shardul Sharma

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Natural Gas & LNG News, Asia/Oceania, Liquefied Natural Gas (LNG), Security of Supply, Corporate, Import/Export, Infrastructure, News By Country, Hong Kong

Japan's MOL Finalises Hong Kong FSRU Deal

The partners behind the Hong Kong LNG Terminal project announced June 21 that they have agreed to charter a floating storage and regasification unit (FSRU) from Japan’s Mitsui OSK Lines (MOL).

The project is a joint venture of Castle Peak Power Company (Capco) and Hongkong Electric Co. (HK Electric). They said they have entered into a time charter agreement with the Japanese company for the FSRU, which will be used in the the Hong Kong offshore LNG terminal project.

The FSRU will be used for receiving, storing, and regasifying LNG for the supply of natural gas to Capco and HK Electric for power generation through two separate subsea gas pipelines. MOL will be responsible for providing operations and maintenance services for the FSRU vessel and the offshore LNG terminal, the two utilities said in a joint statement issued June 21.

Last year, MOL entered into a preliminary agreement to supply the Challenger FSRU to the Hong Kong project. Built in 2017 with a storage capacity of 263,000 mit is the world's largest FSRU. The LNG terminal will distribute gas to two destinations in Hong Kong, the Black Point power station located at New Territories and Lamma power station on Lamma Island.

The Hong Kong offshore LNG terminal project is being developed to support the Hong Kong Special Administrative Region (HKSAR) government's target of generating about half of Hong Kong's electricity from natural gas from 2020 onward to improve air quality.