MOL, Karpower Team-up for LNG-to-Powership Biz

Japanese shipping company Mitsui O.S.K. Lines (MOL) and Turkey’s floating power plant company Karpower International B.V. (Karpowership) have agreed to collaborate in the LNG-to-Powership business.

Under the brand name “KARMOL”, both firms aim to co-invest in the related assets and joint market its solution in selected markets around the world.

The Business 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 and facilities where base load electricity and/or replacements of fuel mode are required to meet the environmental concerns.

Significance of this KARMOL collaboration is  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 also helps replacement of higher emission fuels by LNG to significantly reduce greenhouse gas emissions and the business synergy is assumed by combining both companies track records and excellence in their operations. MOL’s track record and expertise of LNG Carrier and FSRU business and Karpowership’s track record and expertise of Powership business.

Hereafter, MOL and Karpowership will jointly promote the LNG-to-Powership solution to provide this cost competitive and robust solution in selected markets. The parties will aim to materialize several projects in the coming years.

Prior to this press release, parties have started to convert an existing LNG carrier into a floating storage and regasification unit (FSRU) to provide regasified LNG to a Powership.