Mitsui OSK Lines on December 20th 2011 announced that it was awarded contract for the domestic LNG transport project, which is the first one in Indonesia. It will carry 3 million tonnes per year of LNG from Bontang to floating storage and regasification unit, which will be installed off Jakarta in West Java state, Indonesia. This is the first time for the company to win offshore contract in Indonesia.

LNG carrier LNG Aquarius will be owned by the new company, that will be jointly established between Mitsui OSK and Indonesia's shipping company PT Trade Maritime Tbk and placed into service for coastal LNG transportation during the period from late January 2012 to the end of 2022.

The West Java FSRU Project is the Indonesia's first LNG import project, that has been promoted by Nusantara Regas, a JV between Pertamina and Indonesia's state owned gas company PGN. Norway's Golar LNG was already selected as a supplier of FSRU and expected to charter out a vessel with FSRU to Nusantara at the beginning of 2012.

Mitsui OSK participated in the tender for FSRU in West Java with proposal to remodel old LNG Aquarius by installing FSRU, but unfortunately failed in the bids. However, the company succeeded in put the vessel into operations for a new business model, coastal LNG transportation in Indonesia.

Following FSRU in West Java, LNG import projects through FSRU in Medan and East Java are expected to start up sequentially. It is fully anticipated that these projects will also required coastal LNG transport. Accordingly, Mitsui OSK plan to tackle such requirements in the future as well.

(Sourced from TEX Report Limited)