Tokyo — Japan's Mitsui & Co. Ltd. has agreed to take up a 49% stake in a joint venture with global shipping company BW Group to jointly own the floating, storage and regasification unit BW Integrity to be used in Pakistan, the Japanese trading company said Tuesday.
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This will mark the first FSRU project for Mitsui, the company said.
The joint venture between Mitsui and BW Group will lease the FSRU for 15 years to PGP Consortium Ltd. which will then provide regasification services to state-owned Pakistan LNG Terminals Ltd., Mitsui said.
The announcement comes as a senior official with Pakistan's sole LNG importer Pakistan LNG Ltd. told S&P Global Platts in September that the country was in talks to secure an additional 3 million mt/year of LNG in long-term contracts by the end of the year.
The new supply agreements would increase Pakistan's total LNG contractual commitment to more than 11 million mt/year and the new volume was expected to delivered to Pakistan's second FSRU, M. Adnan Gilani, chief operating officer with Pakistan LNG Ltd. then said.
Pakistan's LNG imports are currently being delivered to its first FSRU Exquisite in Port Qasim.
Mitsui said BW Integrity, Pakistan's second FSRU, has LNG receiving capacity of about 5.6 million mt/year and is expected to start operations between end of November to first half of December.
Mitsui also added Pakistan's LNG imports are expected to grow to 20 million mt/year by 2022.
--Eriko Amaha, firstname.lastname@example.org
--Edited by Irene Tang, email@example.com