[Hong Kong] FSRU Challenger

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Project Overview

Hong Kong FSRU project is the LNG recieiving terminal in Hong Kong. In this project MOL provides long-term operation and maintenance services for the offshore jetty as well as chartering MOL FSRU Challenger.



Project Content

This project is conducted jointly by Hong Kong's power utility companies, CLP Power Hong Kong Limited and The Hongkong Electric Company, Limited. The project is Hong Kong's first LNG receiving terminal project and forms part of Hong Kong Government's initiative to improve the environment, including air quality by replacing approximately half of Hong Kong's power generation fuel with natural gas. In this project MOL provides long-term operation and maintenance services for the offshore jetty, where the incoming LNG carriers and FSRU will berth and perform LNG transfer operations, as well as providing MOL FSRU Challenger, the largest FSRU in the world.



Hong Kong has historically been an important overseas base for MOL. In this project, MOL intends to fully utilize our strong network built over many years of business in Hong Kong. Jetty is under construction on the east of the Soko Islands, south of Hong Kong, and is planned to commence operation in 2022. MOL FSRU Challenger will be moored to the Jetty and supply natural gas to Black Point Thermal Power Plant in the New Territories and Lamma Power Station on Lamma Island via newly constructed submerged pipeline.



Challenges

We will be making modifications to MOL FSRU Challenger to enhance its regasification capacity, in order to serve the large volume of gas demand from the two power plants. Our project team is working on developing specifications, ordering required equipment, securing a yard for conducting works, and managing the overall process of the modification

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MOL signs deal on a long-term charter contract to utilize "MOL FSRU Challenger" for Hong Kong Offshore LNG Terminal Project

24 June 2019

TOKYO - Mitsui O.S.K. Lines, Ltd. (MOL; President & CEO: Junichiro Ikeda) today announced that MOL has entered into a long-term charter contract with Hong Kong LNG Terminal Limited (*1), to supply a Floating Storage and Regasification Unit (FSRU) (*2), as well as Jetty Operation & Maintenance Services and Port Services for the Hong Kong Offshore LNG Terminal Project ("Project"). 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 this first FSRU project for Hong Kong. Hong Kong is the historical center of MOL's extensive overseas network and such business experience in Hong Kong has led MOL to the participation of this 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 (*3). The Hong Kong Offshore LNG Terminal will be located at the southern waters of Hong Kong and to the east of the Soko Islands. The FSRU will be delivered to Hong Kong to begin testing and commissioning when the Project finishes construction, currently expected in 2021. The FSRU will supply gas to two destinations in Hong Kong, the Black Point Power Station located in the New Territories and Lamma Power Station located at Lamma Island. The project is being developed to support the Hong Kong Special Administrative Region (HKSAR) Government's plan to increase the percentage of power generation from natural gas to meet its pledged environmental targets.

In addition, MOL has entered into an agreement with Royal Vopak (*4) (Chairman & CEO: Eelco Hoekstra) for this project. Royal Vopak is the world's leading independent tank storage company and will assist in the project development related to the Jetty Operation & Maintenance Services, leveraging upon its global track record in LNG terminal operation.

In MOL's management plan, "Rolling Plan 2019", MOL has positioned its Offshore Business as a field where MOL can leverage its strengths. FSRUs are drawing attention as a solution for flexibility and mobility in both the LNG and Electricity supply chain. MOL will promote the FSRU business and its associated services, which meets customer needs for diversified energy procurement and SDGs achievement (i.e., environmental condition and stable development), as the Asian leading company of FSRU business.