Mitsui O.S.K. Lines Ltd. (MOL) and LNG Terminal Wilhelmshaven (LTW) have signed an agreement to build and charter a 263,000 cu.m LNG Floating Storage and Regasification Unit (FSRU) for the planned LNG terminal in Wilhelmshaven, which is Germany’s only deep water port and can be reached without any tidal constraints.
The FSRU will be built by South Korean’s Daewoo Shipbuilding and Marine Engineering (DSME) then chartered by LTW (which is a subsidiary of Düsseldorf headquartered Uniper SE) for 20 years.
DSME said in a filing last week that it had signed a contract worth $340 million to build an FSRU for an undisclosed customer.
The FSRU will make it possible to offload, store and regasify LNG for the German market. It will be moored off the coast not far from Wilhelmshaven and will handle incoming LNG tankers there. The regasified gas will then be pumped from the FSRU along a short connecting pipeline under the sea to the port facilities and finally fed into the German gas transmission network. This eliminates the need to construct complex regasification facilities on land.
“The LNG terminal in Wilhelmshaven is a long-term project based on the prediction that demand for imported natural gas on the German and European energy markets will increase significantly over the coming years,” said Uniper Member of the Board and Chief Operating Officer David Bryson. “The agreement to build and charter this FSRU is an important milestone for both parties on the journey to establishing an LNG terminal in Wilhelmshaven; it underlines the joint desire for collaboration on this ambitious project. This new agreement will build on the successful and trusting collaboration with MOL on previous major projects in the LNG ship market. Based on Uniper’s many years of experience in the European gas business and project management, LTW is pushing ahead with the terminal project in Wilhelmshaven to give companies from all over the world optimal access to customers in Europe — and, vice versa, to open up a new supply channel for customers.”
“Our mission from this special moment is to execute the project and deliver the unit on time,” said MOL Executive Officer Hiroyuki Nakano. “MOL has expanded its global FSRU business over the past few years. We are confident that our operational and technical experience gained will enhance the project in Germany and provide a seamless, safe and efficient service to LTW.”