Mitsui OSK Lines (MOL) has signed a long-term contract with Deutsche ReGas to supply a Floating Storage and Regasification Unit (FSRU) for the Deutsche Ostsee liquefied natural gas (LNG) import terminal in Mukran, Germany. This contract will help strengthen Germany's energy security and increase the flexibility of LNG imports in the country.
Contract Details
Under this agreement, the Chinese company Hudong-Zhonghua Shipbuilding will convert an existing LNG vessel into an FSRU. The start of this contract is scheduled for 2028, with conversion work expected to begin in the second quarter of 2027 and is anticipated to last approximately seven months. The project includes replacing the ship's engines, gas supply equipment, and pumps.
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According to German media, this contract is valid until 2043 and is worth several hundred million dollars. Additionally, the vessel to be used for the conversion has not yet been specified.
Impact on Gas Supply Capacity
The addition of this FSRU will allow Deutsche ReGas to restore the Mukran terminal's permitted gas supply capacity to a maximum of 13.5 billion cubic meters per year, which is equivalent to nearly 15 percent of Germany's natural gas demand. The terminal is currently operating with the FSRU Neptune, after the Energos Power vessel departed in 2025 following the end of its lease contract with the German government.
Ingo Wagner, CEO of Deutsche ReGas, stated that the new vessel enhances long-term energy security and provides greater flexibility for LNG imports to Germany and Europe.
Expansion of MOL's LNG Infrastructure
For MOL, this agreement is recognized as the first independent LNG vessel conversion project to FSRU aimed at supplying large gas networks. The Japanese group is expanding its upstream LNG infrastructure business, with its FSRU investments and operations including markets in Indonesia, Hong Kong, Poland, and Singapore.
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