MOL, Vopak to jointly operate Hong Kong LNG terminal

Royal Vopak will acquire 49.99% of the shares in Mitsui OSK Lines Ltd.’s (MOL) 263,000-cu m floating storage and regasification unit (FSRU) Challenger, to be stationed under long-term contract in Hong Kong.

The resulting joint venture will change the vessel’s name to Bauhinia Spirit and describe it as the world’s largest FSRU. It will regasify as much as 800 MMscfd, with the companies expecting operations to begin in mid-2022.

Under terms of the joint venture’s contract with Hong Kong LNG Terminal Ltd., the joint venture will provide the FSRU as well as jetty operations and maintenance and port services for an offshore terminal under construction 25 km southwest of Hong Kong.

The natural gas will be used for power generation by Hong Kong’s two utility companies, Castle Peak Power Co. Ltd. and Hongkong Electric Co, which are joint-venture partners in the terminal company.