Mitsui, BW in FSRU JV
Japan’s Mitsui will form a joint venture with BW Group to jointly own the Floating Storage and Regasification Unit (“FSRU”) BW Integrity, set to operate in Pakistani waters.
According to Mitsui, the deal is expected to close as soon as the payment for the 49% stake is completed.
This deal is the first FSRU project for Mitsui, and the first project for a Japanese company to participate in the LNG receiving infrastructure business in Pakistan, Mitsui said,
The JV will lease the FSRU to PGP Consortium Ltd. (“PGPC”) based on a long-term FSRU lease agreement, and PGPC will provide LNG regasification services to Pakistan LNG Terminals Ltd (“PLTL”), a state-owned company.
Pakistan began importing LNG in 2015 to cater to growing domestic demand for natural gas, and declining production of indigenous gas. The demand for imported LNG in Pakistan is expected to grow steadily and reach 20 million tons per annum by 2022. As Pakistan’s second LNG receiving facility in the country, this project delivers a key energy infrastructure project of high national importance.
This is BW’s second FSRU project, with the first being a sister vessel, BW Singapore, which is currently based in Egypt on a five-year charter.
By entering the FSRU business, Mitsui aims to further expand its presence in the gas-value chain business to respond to the growing demand for gas related infrastructure in the newly emerging LNG markets in many parts of the world, Mitsui said.