MOL and Karpowership announce the first LNG-to-Powership project under the co-brand "KARMOL" to be delivered in Nacala, Mozambique

Karpower International B.V.
Mitsui O.S.K. Lines, Ltd

TOKYO-Mitsui O.S.K. Lines, Ltd. ("MOL", head office: Minato-ku, Tokyo; President & CEO: Junichiro Ikeda) )(*1) and Karadeniz Holding A.S. ("Karadeniz"; head office: Istanbul, Turkey; Chairman: Osman Murat Karadeniz)(*2) today announced that MOL and Karpower International B.V. ("Karpowership"; head office: the Netherlands; CEO: Orhan Remzi Karadeniz), a subsidiary of Karadeniz, have agreed to jointly carry out the first LNG-to-Powership project under the co-brand "KARMOL" (*3) in Mozambique and for this purpose jointly own and operate a FSRU (*4) and a Powership® (*5). Ahead of this announcement, MOL and Karpowership jointly made presentation in TICAD Ⅶ (*6) conference where MOL and Karpowership introduced concept of LNG-to-Powership solution and outlines of Mozambique Project.

This LNG-to-Powership project consists of the collaborative operations of the FSRU to deliver regasified LNG and the Powership® to receive regasified LNG in order to produce electricity, which is subsequently provided to Electricidade de Moçambique ("EDM"), the Mozambican National Power Utility, through the electricity connection and transmission facility. As already announced in our press release dated 29th March 2019, the FSRU is now being converted from an existing LNG Carrier. The Powership is currently operating with heavy fuel oil in Nacala, but in accordance with the prior arrangement with EDM, it will be switched to operation with LNG after the FSRU delivery. Remarking on the project Max Tonela Minister of Mineral Resources and Energy of Mozambique, said "This project contributes to our national strategy of increasing the availability and reducing the costs of fuel to generate electricity for industrial development and energy access. This project does it through LNG, a critical fuel for Mozambique's future".

In the past years Mozambique has seen rapid economic growth, which in order to sustain requires the increased supply of stable and affordable supply of electricity. KARMOL's LNG-to-Powership solution with power generation capacity of 120MW will create a stable and reliable supply of electricity for the people of Mozambique and, provide critical infrastructure for the use of LNG within Mozambican territory. When completed, the project will be the first LNG -to Power solution and FSRU project in Eastern and Southern Africa.

MOL and Karpowership will continue to jointly develop LNG-to-Powership projects and provide cost competitive and robust solutions in all over the world.

(*1) Mitsui O.S.K. Lines, Ltd. is a Japanese transport company headquartered in Tokyo, Japan. It is one of the largest shipping companies in the world, and the largest LNG Carrier Operator. Mitsui O.S.K. Lines fleet includes dry cargo ships, liquefied natural gas carriers, Ro-Ro Car Carrier ships, tankers and also diversifies its business to maritime related industries.
https://www.mol.co.jp/en/index.html

(*2) Karadeniz Holding, a parent company of Karpower International B.V (Karpowership), was founded in 1948 and entered the trade of heavy industrial machinery and products. They lead the energy sector not only in Turkey but in the world, as well as having operations in the finance, real estate, and shipbuilding industries.

(*3) Please refer to 29th March press release: MOL and Karpowership (Karpower International B.V.) are to collaborate on the LNG to Powership business -Cooperation in Sales and Investment fields between World's Largest Floating Power Plant company and Largest FSRU Operator in Asia-

(*4) A floating facility for storing and regasifying LNG, which is then pressurized and piped ashore/to the facility.

(*5) In 2007, Karpowership began the production of the first floating power plant "Powership" fleet with the vision of illuminating the world and becoming the pioneers of the global energy market. Karadeniz Holding, which manages the Powership® fleet under its international brand Karpowership, is the only owner, operator and builder of the first Powership™ (floating power plant) fleet in the world and plays an active role in medium to long-term investments; with more than 2500 employees globally. Currently, Karpowership owns and operates 22 Powerships in countries such as Indonesia, Ghana, Mozambique, Gambia, Sierra Leone, Lebanon and Senegal. For more information about Powership®, please refer to their website;
http://www.karpowership.com

(*6) Tokyo International Conference on African Development which is held from 28th Aug to 30th Aug 2019