Japanese banks finance FSRU project in Senegal

The state-owned Japan Bank for International Cooperation (JBIC) and MUFG Bank are providing a loan worth $71 million to finance MOL’s FSRU project in Senegal.

According to a statement by JBIC, the bank signed on December 30 a loan agreement in project financing amounting to up to about $35 million with Senegal LNGT or SLNG, which is incorporated by Japan’s shipping giant MOL and owns the project’s FSRU.

Also, the loan is co-financed with MUFG Bank, bringing the total co-financing amount to about $71 million, it said.

JBIC noted that project finance is a financing scheme in which repayments for a loan are made solely from the cash flow generated by the project.

The bank said the loan would go towards financing the FSRU project in Senegal and would also contribute toward the country’s energy transition.

“Supporting MOL in maintaining and improving its know-how for operation and maintenance of FSRUs in this project will contribute to MOL improving its international competitiveness in the marine development sectors,” it said.

JBIC did not provide any information regarding the status of the project.

FSRU arrived in 2021

To remind, the 125,000-cbm FSRU, KARMOL LNGT Powership Africa, arrived in Senegal from Singapore on May 31, 2021.

The vessel, owned by the joint venture consisting of MOL and Turkey’s Karpowership, KARMOL, left Singapore in April following the completion of conversion works at Sembcorp and the subsequent trials.

It will supply LNG to Karpowership’s 235 MW Karadeniz Powership Ayşegul Sultan located alongside the shores of Dakar.

Moreover, Senegal’s power utility Senelec will buy the generated power as part of an LNG-to-power contract it signed with Karpowership.

GIIGNL said in its yearly report earlier this year that the project had been delayed due to high spot LNG prices.

MOL and Karpowership have not provided updates regarding the project lately.

Most Popular

Canada’s Cedar LNG names FLNG

Canada’s Cedar LNG, a joint venture of Canada’s Pembina Pipeline and the Haisla Nation, has picked a name for its floating LNG facility, which will be located in the traditional territory of the Haisla Nation, on Canada’s West Coast.

NextDecade, Jera seal 20-year LNG SPA

Japan's Jera has signed a 20-year deal to buy liquefied natural gas from the planned fifth train at NextDecade's Rio Grande LNG facility in Texas.

Australia’s Viva Energy gets OK for Geelong LNG import terminal

Australia’s Viva Energy has secured approval from the Victorian government for its proposed FSRU-based LNG import terminal in Geelong, Australia.

More News Like This

MOL says it will consider both Chinese and Korean yards for new LNG carrier orders

Japan's MOL said it will consider both Chinese and South Korean yards for new orders of liquefied natural gas carriers. This follows recent media reports suggesting that MOL intends to suspend new LNG carrier orders to Chinese shipyards.

MOL orders LNG-fueled VLCC for charter to Idemitsu Tanker

Japan's shipping giant MOL has ordered a new LNG-fueled very large crude carrier (VLCC) to sail under a long-term time charter contract with compatriot Idemitsu Tanker.

ONE plans LNG-powered containership order

Ocean Network Express (ONE), a joint venture of Japan's NYK, MOL, and K Line is eyeing an order for LNG dual-fuel container vessels, according to shipbuilding sources.

MOL’s LNG fleet continues to expand

MOL's large fleet of liquefied natural gas (LNG) tankers expanded to 107 vessels as of the end of March this year.