Japan: Tokyo Gas, MOL Agree Transfer of Shares in LNG Shuttle and Regasification Vessels

Tokyo Gas Co., Ltd. and Mitsui O.S.K. Lines, Ltd. today announced that Tokyo LNG Tanker Co., Ltd., a wholly owned subsidiary of Tokyo Gas and MOL executed an agreement under which Tokyo LNG Tanker will receive a minority stake of the shares owned by MOL in the joint-venture companies related to the LNG Shuttle and Regasification Vessels (SRVs) owned jointly by MOL and Höegh LNG.

SRVs take on liquefied natural gas (LNG) cargo at loading terminals and upon arrival at its destination, regasify it onboard, and transfer it to shore via pipelines built on the seabed.

SRVs can also serve as conventional LNG carriers, transporting LNG to discharge at receiving terminals.

This functionality allows SRVs to serve LNG importing nations without requiring the construction of new or additional LNG terminals on shore.

The SRV is an innovative LNG transport and delivery technology. Two SRVs are long time chartered to GDF SUEZ to serve the Neptune LNG Deep Water Port terminal off Boston on the U.S. East Coast as well as other requirements.

Tokyo Gas Group wish to accumulate various LNG related technologies to create a framework for more flexible LNG transport, and MOL is constantly on the move to broaden its lineup of LNG transport services to meet diversified customer needs.

Both companies’ intentions are matched and lead to the agreement to transfer shares in the joint ventures.

Höegh LNG welcomes Tokyo Gas as shareholder and regards this as a strategic partnership for the future.

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Source: Mitsui O.S.K. Lines, August 31, 2010