MOL Signs a Letter of Intent with Russian State-owned Leasing Company GTLK for the World Largest FSU Projects in Kamchatka and Murmansk
September 02, 2021
TOKYO-Mitsui O.S.K. Lines, Ltd. (MOL; President & CEO: Takeshi Hashimoto; Headquarters: Tokyo) today announced that it has signed a Letter of Intent with Public Joint-Stock Company "State Transport Leasing Company" (GTLK；Head Office: Russia) (Note 1), a state owned leasing company under the Ministry of Transport of the Russian Federation, for the potential acquisition of total 49% shares of the FSU (Floating Storage Unit) owner companies, which are currently 100% owned by GTLK, in relation to the LNG transshipment projects in Kamchatka and Murmansk (Note 2). The above-mentioned FSU owner companies have earlier entered into bareboat charter agreements with Arctic Transshipment LLC (joint venture of JSC NOVATEK (NOVATEK; Head office: Russia) and TotalEnergies S.E. (Head office: France)), that will provide transshipment services to NOVATEK's LNG-projects by reloading LNG cargoes from ice-class LNG carriers (Note 3) to conventional LNG carriers.
Two (2) FSUs with a world largest storage capacity of about 360,000m3 will be placed at each of Bechevinskaya Bay in the Kamchatka Territory and Ura Bay at Murmansk. The two FSUs are currently being constructed at Daewoo Shipbuilding & Marine Engineering Co., Ltd. (Head Office: Geoje, Korea). Once the construction is completed, the FSUs will be towed to Kamchatka and Murmansk to be placed at each of their sites. MOL have been supporting the construction from the technical and engineering perspective, in particular the basic design, plan approval and site supervision works.
By transporting LNG via Northern Sea Route and by transshipping at Kamchatka and Murmansk, it is expected to reduce voyage costs and greenhouse gas emissions. In addition, securing LNG at a location close to a point of consumption is believed to increase security and reliability of energy supply. Furthermore, ensuring steady access to energy resources in the Russian Arctic region should contribute to stable energy supply to Japan. MOL will contribute to stable LNG transportation by providing a wide variety of services, from icebreaking LNG carriers which transport LNG from loading ports in Russian Arctic to above-mentioned LNG transshipment terminals, and to conventional LNG carriers which deliver LNG from the transshipment terminals to discharging ports.
Addressing environmental issues in line with "MOL Group Environmental Vision 2.1" (Note 4), the MOL Group implements ongoing group-wide efforts to achieve sustainable net zero GHG emissions, and contributes to the realization of a low-carbon society.
(Note 1) Company Overview
GTLK (in Russian, Государственная Транспортная Лизинговая Компания), wholly owned by the Russian Federation, is the largest leasing company in Russia. GTLK is an instrument for implementation of government objectives and national projects under the Ministry of Transport of the Russian Federation.
https://www.gtlk.ru/en/
(Note 2) For details, please refer to:
September 27, 2019 press release
MOL, JBIC, and NOVATEK Sign Cooperation Agreement for LNG Transshipment Projects in Kamchatka and Murmansk
(Note 3) For details, please refer to:
November 2, 2020 press release
MOL signs Charter Contract for Three Ice-Breaking LNG Carriers for Arctic LNG 2 Project in Russia
(Note 4) MOL Group Environmental Vision 2.1
https://mol.disclosure.site/en/themes/101
