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.

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