MOL Wins Order for Indonesia's 1st Coastal Transport Project
December 20, 2011
TOKYO-Mitsui O.S.K. Lines, Ltd. (MOL; President: Koichi Muto) today announced that the company was selected to transport liquefied natural gas (LNG) to a floating storage and regasification unit (FSRU) (*1) operated by PT Nusantara Regas (headquarters: Jakarta; President Director: Hendra Jaya) (*2) off Jakarta.
The project marks Indonesia's first domestic transport of LNG. It will ship up to 3 million tons of LNG from Bontang and other Indonesian ports. It is also MOL's first offshore business in Indonesia.
MOL established a joint venture with Indonesian ocean shipping company PT Trada Maritime Tbk (headquarters: Jakarta; President Director: Teguh Arya Putra) (*3) which owns and operates the LNG carrier LNG Aquarius (*4). Operation is scheduled to start in late January, 2012, and the transport contract runs through the end of 2022.
Coastal transport of LNG is a new business model for Indonesia, where domestic demand for natural gas is increasing. MOL takes a proactive stance in providing LNG transport services that precisely meet customer needs.
(*1)Floating Storage and Regasification Unit (FSRU)
LNG transported from the production site by an LNG carrier is discharged offshore near the point of consumption. The FSRU then returns the LNG to its gaseous form, which is transported by pipelines for distribution to gas utilities and consumers.
(*2)PT Nusantara Regas
Indonesian company owned 60% by Indonesian national oil company PT Pertamina (Persero) (headquarters: Jakarta) and 40% by Indonesian national gas company PT Perusahaan Gas Negara (Persero) Tbk (headquarters: Jakarta).
(*3)Ownership of new company
PT Trada Maritime Tbk: 51%, MOL: 49% (proposed)
(*4)Profile of vessel
Capacity: 126,300m³ (5 MOSS-type spherical tanks)
Built in: 1977