Tokyo-based Mitsui O.S.K. Lines (MOL) has signed a project finance agreement with a consortium of leading banks for a newbuild floating storage and regasification unit (FSRU) that will operate as Singapore’s Second LNG Terminal.
The banking syndicate includes the Japan Bank for International Cooperation (JBIC), Mitsubishi UFJ Financial Group (MUFG), DBS Bank, OCBC, and Standard Chartered Bank. The FSRU will be operated by Singapore LNG Corporation (SLNG), marking the first deployment of an FSRU in Singapore.
The project is a significant milestone for Singapore’s energy infrastructure, strengthening the country’s LNG import capacity and enhancing energy security. Imported natural gas accounts for around 95 per cent of Singapore’s domestic power generation, making reliable LNG supply critical to the nation’s energy system.
MOL said the project supports Singapore’s efforts to ensure a stable and flexible gas supply while adapting to evolving energy needs. The FSRU model allows for faster deployment and greater operational flexibility compared to conventional onshore terminals.
The agreement also aligns with MOL Group’s long-term strategy under its management plan, BLUE ACTION 2035, which focuses on expanding offshore and low-carbon businesses. Through this project, MOL aims to contribute to the regional energy transition and decarbonisation while reinforcing its presence in LNG-related offshore infrastructure.
Construction and deployment of the FSRU will position Singapore to meet future energy demand with enhanced resilience, while supporting its broader sustainability and transition goals.