Mitsubishi, BW Offshore to join forces in LNG FPSO marketing

Japan?s Mitsubishi Heavy Industries, Ltd. (MHI) announced on Wednesday that it has reached a basic agreement with BW Offshore Limited, one of the world's leading floating production, storage and offloading (FPSO) contractors, to collaborate in the marketing of FPSO for LNG.

The two companies plan to sign a memorandum of understanding, MHI said.

The collaboration of the two companies aims to improve the position from which to propose LNG-FPSO to potential customers throughout the world by combining their expertise - MHI's knowhow, garnered through the experience of constructing numerous LNG carriers and offshore structures, and BW Offshore's significant experience with FPSO projects, according to MHI. ?Through the effective sharing of roles, the two companies will accelerate its marketing activities and are well positioned to execute their first LNG-FPSO project?.

The agreement outlines the joint development of design and joint marketing activities, mainly targeting LNG-FPSO projects, with around two million tons per annum (MTPA) production capacity. Specifically, MHI will take charge of the vessel's hull and LNG storage tank portion and BW Offshore among others will be responsible for the pretreatment and liquefaction facilities and production and mooring solutions.

MHI said at present, gas development projects using LNG-FPSO are either planned or being discussed on offshore sites in many countries, including Australia, Indonesia and Brazil. (alex)