MOL and COSCO commit to LNG and Ethane projects

MOL and COSCO commit to LNG and Ethane projects

Mitsui O.S.K. Lines (MOL) and COSCO SHIPPING Energy Transportation, a subsidiary of China COSCO Shipping Corporation, have signed a Memorandum of Understanding to further the joint cooperation between the two organisations for future LNG carrier projects and Ethane carrier projects.

MOL and CSET have established a strong and extensive partnership for more than ten years. The companies jointly participate in various ongoing projects, including the ExxonMobil DES Project, Australia Pacific LNG Project and Yamal LNG Project.

The Yamal LNG Project is LNG production at gas fields distributed in Yamal Peninsula located in the Arctic Circle in Russia. MOL agreed participation in 2014, challenging LNG transport via the Northern Sea Route (NSR) by the world’s first ice-breaking LNG carrier.

MOL assigned engineers to the shipyard in South Korea to construct the series-three of 15 owned by MOL-of the world’s first ice-breaking LNG carriers. MOL also developed the ship management system toward operation on NSR through seafarer training under the actual environment. The first MOL-owned vessel was delivered from the shipyard in South Korea in January 2018 and deployed in the project at the end of March after sea trials (ice trials) in the Arctic Ocean. The final and third vessel will be delivered at the end of 2019 to serve in LNG transport form the Arctic Circle.

MOL also began operating the first very large ethane carrier in 2016 in a tie with Reliance Industries in India.

COSCO Shipping Energy specialises in LNG and has more than 20 LNG vessels in operation and 9 LNG vessels on order. In April this year, COSCO signed an agreement with Seaspan Corporation to strengthen development and cooperation on both LNG and Ethane projects and transportation.

The latest MoU will see the companies further develop their partnership by exploring new opportunities for LNG and Ethane carrier projects.