Japan’s Mitsui OSK Lines yesterday revealed it has entered into a preliminary agreement with Hong Kong energy provider CLP Power, to supply a Floating Storage and Regasification Unit, as well as Jetty Operation & Maintenance Services for the Hong Kong Offshore LNG Terminal Project on a long-term 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 the Hong Kong Offshore LNG Terminal 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. The Hong Kong Offshore LNG Terminal Project will be located at the southern waters of Hong Kong and to the east of the Soko Islands.
The FSRU is expected to enter into service at the Hong Kong Offshore LNG Terminal around the end of 2020 earliest after delivery and completion of commissioning. The FSRU will distribute gas into two destinations in Hong Kong, the Black Point Power Station located at New Territories and Lamma Power Station located at Lamma Island.
CLP Power made its proposal for an offshore LNG terminal in May 2016. The company followed up with its environmental impact study in April this year. The energy company currently pipes in gas from Central Asia via the Second West-East Gas Pipeline as part of a contract with the mainland as well as a supply from the depleting Yacheng gas field near Hainan.
“Discussions are ongoing to develop and reach a definitive agreement for the supply of the FSRU, which will assist in improving the long-term energy security for Hong Kong as well as providing access to competitive natural gas supply from world markets. MOL is enthusiastic to contribute to the success of Hong Kong’s first ever LNG import project through the provision of our FSRU service,” Said MOL in a press release issued yesterday.
“Planning for the Hong Kong Offshore LNG Terminal Project is progressing at a good pace and the project’s Environmental Impact Assessment (EIA) Report has been completed, and is available for a 30-day public inspection until 14 July 2018. We have reached preliminary agreements on LNG supply and the Floating Storage and Regasification Unit (FSRU) vessel arrangements, and we will continue the discussions with our suppliers towards reaching definitive agreements,” said a CLP spokesperson.
The LNG terminal project forms part of a strategy to support the Hong Kong Government’s target of generating about 50% of Hong Kong’s electricity from natural gas from 2020 onward. CLP has also commissioned an additional gas-fired generation unit at the Black Point Power station in Tuen Mun, which is expected to go into commercial operation by 2020.