Mitsui O.S.K. Lines, Ltd. (MOL) and Karpower International B.V. have announced an agreement to collaborate in the liquefied natural gas (LNG)-to-Powership business.
This will make them become the world’s most reliable and preferable LNG to Powership solution provider, under the brand name of ‘KARMOL’.
The parties aim to co-invest in the related assets and joint market its solution in selected markets around the world.
Mitsui O.S.K. Lines, Ltd. is a Japanese transport company headquartered in Tokyo, Japan. It is one of the largest shipping companies in the world, and the largest LNG Carrier Operator.
Mitsui O.S.K. Lines fleet includes dry cargo ships, liquefied natural gas carriers, Ro-Ro Car Carrier ships, tankers and also diversifies its business to maritime-related industries.
With the collaboration, they will generate power through the Powership by receiving regasified LNG through a floating LNG storage and regasification unit to provide reliable electricity to shore grids.
They will also provide facilities where baseload electricity and/or replacements of fuel mode are required to meet the environmental concerns.
The significance of this KARMOL collaboration includes the provision of very competitive initial Capex construction cost and fast track solution to provide LNG to Power to create immediate savings for customers and to meet the power demand.
It will also be the replacement of higher emission fuels by LNG to significantly reduce greenhouse gas emissions
Also, Business synergy is assumed by combining both companies track records and excellence in their operations as MOL’s track record and expertise of LNG Carrier, as well as Karpowership’s track record and expertise of Powership, is unquestionable.
With this agreement, MOL and Karpowership will jointly promote the LNG-to-Powership solution to provide a cost competitive and robust solution in selected markets. The parties will aim to materialize several projects in the coming years.
The parties have started to convert an existing LNG carrier into floating storage and regasification unit (FSRU) to provide regasified LNG to a Powership.