Germany's Deutsche ReGas has sealed a deal with Japan’s shipping giant Mitsui O.S.K. Lines (MOL) to deploy a newly converted floating storage and regasification unit (FSRU) at a liquefied natural gas (LNG) import terminal in Germany to strengthen local and regional energy security.
MOL has signed a long-term time charter contract with Deutsche ReGas for the deployment of an FSRU at Germany’s Deutsche Ostsee LNG terminal in Mukran. As a result, an LNG carrier will be converted at Hudong-Zhonghua Shipbuilding in China into an FSRU that will be on charter with the German LNG player starting in 2028.
Jotaro Tamura, President & CEO of MOL, commented: "The FSRU project represents a major strategic milestone for MOL. We are pleased to partner with Deutsche ReGas on this important infrastructure project and to work together with HZ to deliver an FSRU solution. Through this FSRU project, MOL will further strengthen its position as a global provider of LNG infrastructure while contributing to Germany's and Europe's import solution."
While the Japanese firm has previously undertaken FSRU conversion projects in collaboration with partner companies for their specific use, the Asian player explains that this project marks its first FSRU conversion project as its sole initiative to be developed for LNG deliveries to major gas networks.
Suryan Wirya-Simunovic, Managing Executive Officer, said: "The FSRU project is a landmark achievement for MOL Europe and Africa Region and reflects our commitment to developing critical energy infrastructure that supports Europe's evolving energy needs.
“By combining MOL's global LNG expertise with Deutsche ReGas's strong market position and leading operatorship in Germany, we are creating a reliable and flexible solution that will contribute to supply security and energy resilience in the region."
The commemorative ceremony was held in Tokyo on October 29, with attendees including Ingo Wagner, Deutsche ReGas’ CEO, and Jotaro Tamura, MOL President & CEO. Located on Germany's Baltic Sea coast, Mukran is home to the LNG import terminal Deutsche Ostsee, said to play a key role in diversifying gas supply sources for Germany and Europe.
Wagner emphasized: "We are excited about the future partnership with MOL as the leading player in floating LNG infrastructure. As the only LNG-Terminal in the eastern part of Germany and critical infrastructure, Deutsche ReGas has demonstrated its strategic importance for security of supply.
“By restoring the Terminal's fully permitted capacity, we are continuing the path which we started in 2024. This allows to strengthen long-term energy security and creates additional import flexibility benefiting consumers, industry and energy markets alike. Formidable energy companies are reliable partners for us an infrastructure provider."
Compared with conventional land-based LNG terminals, FSRUs are perceived to provide shorter development schedules and lower capital investment requirements while offering flexible and scalable energy infrastructure solutions.
The Japanese shipping firm underlined: “Leveraging the expertise and know-how cultivated through our extensive LNG transportation track record with the world's largest LNG carrier fleet, MOL has been expanding vertically into the downstream segment of the LNG value chain, including LNG receiving and regasification.
“Through the project, MOL will provide a reliable and flexible LNG import solution for the German and European gas markets, thereby promoting the diversification of gas supply sources and the expansion of LNG import capacity, and contributing to a stable energy supply across Europe.”