Uniper and Mitsui O.S.K. Lines (MOL) have agreed to move ahead with a floating storage and regasification project (FSRU terminal) at the former’s location in Wilhelmshaven, Germany.
The FSRU terminal with a planned send-out capacity of 10 bcm/a and an LNG storage capacity of 263,000m³ is expected to enter into operations as early as the second half of 2022.
According to Uniper, a FSRU can be constructed cheaper and faster compared to an on-shore facility while risks associated with construction are reduced. The FSRU terminal will be designed to make it possible for the loading of small-scale barges to facilitate the use of LNG as marine fuel, said the German energy company.
Uniper and MOL believed that the project will benefit from the infrastructure that is already in place at the Wilhelmshaven site, which is the only deep-water port in Germany. Furthermore, Wilhelmshaven is in proximity to existing pipeline and gas storage infrastructure.
MOL senior managing executive officer Takeshi Hashimoto said: “We continue to support Uniper through our existing strong relationship and cooperation to secure Germany’s first LNG terminal in Wilhelmshaven.”
MOL is expected to own, operate and fund the FSRU terminal. On the other hand, Uniper, in its role as project developer, will work with the relevant authorities regarding the permits for the operation of FSRU project and to bring in additional market participants for its regasification capacity.
Uniper chief commercial officer Keith Martin said: “Our partnership with MOL combined with the FSRU technology as well as Wilhelmshaven’s uniqueness in Germany, provide the fastest and most economical way to realise LNG imports directly into Germany. This will also be to the benefit of the end-customers.”
Apart from the agreement for the FSRU terminal in Wilhelmshaven, MOL has agreed to provide shipping capacity equivalent to a 180,000 m³ LNG carrier to Uniper for a duration of 20 years. Uniper plans to use the additional shipping capacity to streamline LNG volumes procured from Freeport, US, and to leverage its expanding LNG trading activities further.
The LNG transportation agreement will come into effect in December 2020.