Mitsui has signed a deal to form joint venture (JV) with BW Group and acquire 49% stake in the Floating Storage and Regasification Unit (FSRU) BW Integrity in Pakistan.
As per the deal, Mitsui will have 49% stake in the JV, BW FSRU II, while BW Group will own the remaining interest. Financial terms of the deal were undisclosed.
BW Group will continue to own 51% share in BW Integrity vessel and will also provide commercial and technical management services.
BW LNG MD Yngvil Åsheim said: “BW Integrity represents BW’s commitment to provide customers with high quality floating solutions for LNG and we are proud to team up with Mitsui to further enhance our delivery. BW Integrity is ready to serve Pakistan’s energy needs for the next 15 years.”
The JV plans to lease the FSRU vessel to PGP Consortium under a long-term lease agreement. PGPC is under contract to provide LNG regasification services to state-owned company Pakistan LNG Terminals (PLTL).
Mitsui integrated transportation systems business unit II COO Takeshi Setozaki said: “The opportunity for us to enter the FSRU business is a very big step forward for our future business strategy.
“As a LNG receiving/regasification base project is an extension of the LNG shipping business area, it is important to acquire know-how of the FSRU business and to maintain effective relationships with partners like BW.”
Scheduled to be commissioned in by the end of December 2017, the BW Integrity FSRU vessel is built by Samsung Heavy Industries. It has LNG storage capacity of 170,582m3 and regasification capacity of 750mmscf/d.
According to estimates, imported LNG demand Pakistan is expected to grow and reach 20 million tons per annum by 2022.
Image: The BW Integrity FSRU vessel is built by Samsung Heavy Industries. Photo: courtesy of MITSUI & CO., LTD.