Regional LNG: MOL secures project financing for Singapore FSRU
Wednesday, December 24 2025 - 05:31 AM WIB
By Romel S. Gurky
Mitsui O.S.K. Lines, Ltd. (MOL) has signed a project finance agreement with a syndicate of international banks to support the development of Singapore’s first floating storage and regasification unit (FSRU), a project that will underpin the country’s second LNG import terminal and strengthen long-term energy security.
In a statement on December 23, MOL said the financing was arranged with a banking syndicate comprising the Japan Bank for International Cooperation (JBIC), Mitsubishi UFJ Financial Group (MUFG), DBS Bank, Oversea-Chinese Banking Corporation (OCBC), and Standard Chartered Bank (Singapore). The newbuild FSRU will be operated by Singapore LNG Corporation Pte Ltd (SLNG), the state-owned LNG terminal operator.
The project marks the first deployment of an FSRU in Singapore, where around 95% of electricity generation relies on imported natural gas. Once operational, the FSRU will function as Singapore’s second LNG terminal, providing additional flexibility and resilience to the country’s gas supply system.
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MOL said the financing reflects a convergence of interests between its strategy to expand FSRU solutions globally, JBIC’s mandate to support Japanese companies’ overseas growth, and participating banks’ focus on advancing the energy transition and decarbonization in Asia. The project is also aligned with MOL’s long-term management plan, BLUE ACTION 2035, and its Environmental Vision 2.2, which emphasize the expansion of low-carbon and decarbonized businesses alongside traditional shipping.
The FSRU will be constructed by Hanwha Ocean Co., Ltd. in South Korea and is scheduled for delivery in 2027. The vessel will have an LNG storage capacity of 200,000 cubic meters and a regasification capacity of up to 5 million tonnes per annum. It will be moored at Jurong Port, where it will receive, store and regasify LNG before sending gas to shore.
The project financing follows MOL’s earlier agreement with SLNG in October 2024, when the company signed a long-term time charter contract for the same FSRU. Under that agreement, MOL will own, manage and operate the unit throughout the charter period.
Editing by Alexander Ginting