MOL and Gaz-System shake hands on deal for Poland’s first FSRU

Poland’s gas transmission system operator, Gaz System, the project developer and operator of the country’s future liquefied natural gas (LNG) terminal in the port of Gdańsk, has signed a long-term time charter party (TCP) agreement for a floating storage and regasification unit (FSRU) with a subsidiary of Japan’s shipping major Mitsui O.S.K. Lines (MOL).

Port of Gdańsk; Source: Gaz-System

Following Gaz-System’s announcement that BW LNG and MOL were the two main contenders for the FSRU last November, the latter emerged as the winner at the end of January. With an estimated regasification capacity of 6.1 bcm of gaseous fuel per year, the FSRU’s entire regasification capacity has already been booked.

The project entails the construction of a new floating LNG receiving terminal approximately three kilometers off the coast of the Polish port of Gdańsk. Once the construction at South Korea’s HD Hyundai Heavy Industries shipyard is complete, which is expected in 2027, the FSRU will be managed by the MOL Group. 

Aside from playing an important role in the terminal as a receiving and storage facility, the vessel will also help strengthen Poland’s energy security as the country’s first FSRU. This project is also perceived to be of great interest to Europe.

In line with this, the EU has designated it in its Energy Infrastructure Regulation as a “project of common interest”, or an infrastructure development project that contributes at a regional level. As a result,  it received financial assistance from the European Commission (EC) for pre-investment works for the offshore part of the project.

MOL recently launched commercial operations for an FSRU in West Java, Indonesia, part of a project described as Asia’s first gas-to-power project using FSRU, electric generation, and gas-related facilities developed in an integrated manner. 

The firm also received another transition-linked loan last month as part of its decarbonization efforts while a previous loan was used for the construction of an LNG-powered dual-fuel very large crude carrier (VLCC).

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