Prime Highlights

• Mitsui OSK Lines (MOL) has signed a financing deal for a new Floating Storage and Regasification Unit (FSRU) in Singapore.
• The FSRU will be operated by Singapore LNG Corporation, enhancing the country’s energy security and flexibility.

Key Facts

• The financing is supported by DBS, OCBC, Standard Chartered, and other banks, though the deal value is undisclosed.
• The FSRU, announced in October 2024, will help Singapore manage rising LNG demand, essential for its electricity generation.

Background

Mitsui OSK Lines (MOL) has signed a project financing agreement with a group of international and regional banks to fund a new floating storage and regasification unit (FSRU) for Singapore. The Japanese shipping firm announced the deal on Tuesday.

The newbuild FSRU will be operated by Singapore LNG Corporation and will function as Singapore’s second liquefied natural gas terminal. The vessel will receive and store LNG offshore, convert it back into gas, and send it to shore for domestic use.

Banks participating in the financing include DBS, OCBC, Standard Chartered Bank (Singapore), Japan Bank for International Cooperation and Mitsubishi UFJ Financial Group. MOL did not disclose the value of the financing.

The project was first announced in October 2024 and marks the first time Singapore will deploy an FSRU. The move strengthens the country’s energy infrastructure as it continues to rely heavily on imported natural gas, which accounts for about 95 per cent of its electricity generation.

MOL said the project aligns with its long-term vision of meeting changing social needs, including environmental protection, through advanced technology and services. The company added that LNG-related infrastructure forms a key part of its broader social infrastructure business.

The development also supports MOL’s management plan, Blue Action 2035, which focuses on expanding both shipping and non-shipping businesses. The project supports the company’s environmental plan, MOL Group Environmental Vision 2.2, which focuses on expanding low-carbon and decarbonized businesses throughout the group.

For Singapore, the FSRU boosts flexibility in its gas supply system and improves energy security as demand rises. For MOL, the deal strengthens its position in global LNG transport and infrastructure, while helping the shift toward cleaner energy solutions.

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