JBIC, MUFG Bank Announce $71 Million Loan for FSRU Project in Senegal

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Japanese-based financial institution, the Japan Bank for International Cooperation (JBIC), has signed a loan agreement which will see the institution provide $35 million in funding for the Japanese shipping company, Mitsui O.S.K Lines’ (MOL), floating storage and regasification unit (FSRU) project in Senegal.

Co-financed with global financial services group, Mitsubishi UFJ Financial Group (MUFG), the total financing package equates to $71 million.

The deal was signed between the JBIC and Senegal LNGT Company Limited (SLNG) and features a financing scheme that will serve to contribute towards Senegal’s energy transition and through which repayments will be made by income generated from the regasification project.

The FSRU project will regasify LNG for use in electricity generation on an LNG powership, which will then be sold to Senegal’s state-owned power company, Société national d’électricité du Sénégal (Senelec).

“Supporting MOL in maintaining and improving its know-how for operation and maintenance of FSRUs in this project will contribute to MOL improving its international competitiveness in the marine development sectors,” JBIC indicated in a statement.

The FSRU, owned by Karmol, an equal joint venture between MOL and Turkish powership developer and operator, Karpowership, stands at 272m in length and boasts a capacity of 125,000m3, and will supply LNG to Karpowership’s 235 MW floating power plant, which is situated along the shore of Senegal’s capital of Dakar. Power generated from the powership will be purchased by Senelec as part of the Senegal’s LNG-to-power strategy.

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Matthew Goosen

Matthew Goosen

Matthew Goosen is a Video Editor and Content Writer at Energy Capital & Power. He holds an Honours Degree in Film and Media Studies at the University of Cape Town and is currently undergoing his Masters Degree. Born in Pretoria and raised internationally, he has been living in Cape Town since 2013.

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