In this connection, the Japanese shipping company has inked agreements with the Swan Energy subsidiary for the long-term operation and/or maintenance of a floating, storage and regasification unit (FSRU).
It has also signed an agreement with Swan LNG for the provision and long-term operation and/or maintenance of a floating and storage unit (FSU).
Both the FSRU and FSU will be used as the core receiving facilities in an LNG terminal that will be developed by Swan Energy at Jafrabad to help India double its LNG capacity.
MOL says that the agreements are part of its initiatives to "pursue vertically integrated businesses that are not limited to transportation in the LNG business."
Apart from that, it also allows the Japanese transport company to expand its LNG business in the emerging Indian market.
The Jafrabad FLNG project is aimed to be commissioned by early-2020 and will have a production capacity of five million metric tonnes per annum (MMPTA).
MOL has an option to participate in the joint ownership of the FSRU which has been ordered and owned by a Swan Energy subsidiary. Under the agreement terms, MOL can exercise the option any time prior to the FSRU arrival at shipyard.
MOL stated: “FSRUs are drawing attention as a solution for flexibility and mobility in the LNG supply chain.
“MOL will promote the FSRU business, which meets customer needs for diversified LNG procurement, as one of world's largest LNG carrier operators and the only Japanese FSRU owner and operator.”
Recently, Swan LNG had awarded the engineering, procurement and construction (EPC) contract for the Jafrabad FLNG project to Black & Veatch.
Image: The Jafrabad FLNG project is aimed to be commissioned by early-2020. Photo courtesy of © Swan LNG.
