MOL to provide FSRU for second Singapore LNG terminal

Agreements for the second LNG terminal in Singapore were signed on 23 October between developer and operator Singapore LNG Corp (SLNG), and Mitsui OSK Lines (MOL), Jurong Port, and Wood plc.

SLNG has inked an agreement with MOL to charter a 200,000 cu metre newbuild FSRU for a period of five years. The newbuild is be constructed at South Korean shipbuilder Hanwha Ocean and will have a regasification capacity of 5 million tonnes per annum (MTPA).

Leong Wei Hung, Chief Executive Officer of SLNG, said, “The Second LNG Terminal underscores the continued importance of LNG in Singapore’s energy mix, as well as SLNG’s continual role and responsibility in helping to ensure Singapore’s energy security.”

The FSRU is expected to enter service by the end of decade and combined with the existing SLNG terminal on Jurong Island and will increase its regasification capacity to 15 MTPA.

MOL will also contribute operational and technical expertise to the project. Takeshi Hashimoto, President & CEO of MOL, said, “MOL has been actively engaged in a variety of global FSRU projects, establishing substantial expertise to provide services with assured reliability.”

SLNG will develop the new terminal at Jurong Port and infrastructure to connect the FSRU to onshore pipelines and the Singapore gas pipeline network. SLNG has awarded the Front-End Engineering Design (FEED) contract to a subsidiary of Wood to define the scope of the onshore connecting infrastructure, and this is expected to be completed around mid-2025.

Related:Singapore plans to build second LNG terminal

Terence Seow, Chief Executive Officer of Jurong Port, said “Our waterfront infrastructure and proximity to existing gas network will be helpful to support the operation of the Second LNG Terminal.”