Mitsui O.S.K. Lines, Ltd. (MOL) has signed a project finance agreement covering a newbuild floating storage and regasification unit (FSRU) that will be operated by Singapore LNG Corporation Pte Ltd (SLNG) as Singapore’s Second LNG Terminal.
The banking syndicate includes Japan Bank for International Cooperation (JBIC), Mitsubishi UFJ Financial Group (MUFG), DBS Bank (DBS), Oversea-Chinese Banking Corporation Limited (OCBC), and Standard Chartered Bank (Singapore) Ltd. (SCB).
MOL said the project represents the first deployment of an FSRU in Singapore. The company also noted that the country relies on imported natural gas for about 95% of domestic power generation.
An FSRU is a floating facility that stores LNG and regasifies it for delivery into a gas network. MOL described the financing as a joint outcome of its FSRU supply-support strategy, JBIC’s support for Japanese business expansion in Asia, and the participating banks’ emphasis on energy transition and decarbonisation initiatives in the region.
