Uniper, Mitsui OSK Lines to Intensify FSRU Plans
Uniper, the German energy supplier Uniper and Japan’s Mitsui OSK Lines (MOL) will intensify their efforts to implement a floating storage and regasification unit (FSRU) at former’s site in Wilhelmshaven, Germany, the two companies said December 17 in a joint statement.
The FSRU has a planned send-out capacity of 10bn m3/yr and an LNG storage capacity of 263,000 m³. “The facility could be in operation as early as the second half of 2022. The project benefits from the existing site in Wilhelmshaven where required infrastructure is already in place. Wilhelmshaven is the only German deep-water port and can be reached without any tidal constraints. In addition, Wilhelmshaven is closely located to the existing pipeline and gas storage infrastructure,” they said.
MOL intends to own, operate and finance the FSRU while Uniper, as project developer, will continue to work closely with the relevant authorities to receive the permits for the operation of the facility and to gather interest for regasification capacity from additional market participants.
The FSRU will be designed to allow for the loading of small-scale barges to enable the use of LNG as marine fuel, the joint statement said. Further, onward transportation of LNG on trucks will be possible.
“We are glad that we were able to get such an experienced partner as MOL on board for the development of Germany’s first LNG terminal. 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,” Keith Martin, Uniper’s chief commercial officer, said.
Uniper believes an LNG terminal would strengthen the security of gas supply in Germany and increase competition to the benefit of end customers.
“We continue to support Uniper through our existing strong relationship and co-operation to secure Germany’s first LNG terminal in Wilhelmshaven,” Takeshi Hashimoto, senior managing executive officer of MOL, stated.
Additionally, Uniper and MOL entered into a binding transportation agreement whereby MOL will provide Uniper with shipping capacity equivalent to a 180,000 m³ LNG carrier. The agreement will commence in December 2020. Uniper intends to use the additional shipping capacity to optimize LNG volumes sourced from Freeport in the US, and to further leverage its expanding LNG trading activities, Uniper said. Already in 2015 Uniper contracted approx. 0.9 mtpa of US LNG exports. The supply contract has a duration of 20 years.