MOL Plans to Provide FSRU to Hong Kong

Mitsui O.S.K. Lines, Ltd. (MOL; President & CEO: Junichiro Ikeda) announced on June 25 that MOL, has entered into a preliminary agreement to supply a Floating Storage and Regasification Unit (FSRU), as well as Jetty Operation & Maintenance Services for the Hong Kong Offshore LNG Terminal Project on a long-term contract. MOL will utilize the "MOL FSRU Challenger" built in 2017 with a storage capacity of 263,000m3 which remains the largest FSRU in the world today, to provide services to the Hong Kong Offshore LNG Terminal Project.

The FSRU was constructed at Daewoo Shipbuilding & Marine Engineering Co., Ltd. in South Korea and is currently employed on a mid-term charter for a project in Turkey. The Hong Kong Offshore LNG Terminal Project will be located at the southern waters of Hong Kong and to the east of the Soko Islands. The FSRU is expected to enter into service at the Hong Kong Offshore LNG Terminal around the end of 2020 earliest after delivery and completion of commissioning. The FSRU will distribute gas into two destinations in Hong Kong, the Black Point Power Station located at New Territories and Lamma Power Station located at 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 and environmental condition in Hong Kong. Planning for the Hong Kong Offshore LNG Terminal is progressing at a good pace and the environmental impact assessment study for the project has been submitted to the Government. Discussions are ongoing to develop and reach a definitive agreement for the supply of the FSRU which will assist in improving the long-term energy security for Hong Kong as well as providing access to competitive natural gas supply from world markets. MOL is enthusiastic to contribute to the success of Hong Kong's first ever LNG import project through the provision of our FSRU service.