Mitsui Osk Lines' (MOL) wholly owned subsidiary Lakler has signed a 20-year contract for Gas Sayago-led floating storage and regasification unit (FSRU) project in Uruguay.

Gas Sayago is a joint venture between state-oil company Ancap and power company UTE.

Nikkei Asian Review reported that MOL plans to make a $376m investment to build a LNG receiving unit stationed, 2km from the coast of Uruguay.

The contract will come into effect after securing governmental approval, which is expected to be granted by the end of this year.

FSRU will be equipped with a 263,000m³ LNG storage tank and supply gas to Uruguay and neighbouring countries. It is also expected to supply gas to Argentina.

"FSRU will be equipped with a 263,000m³ LNG storage tank and supply gas to Uruguay and neighbouring countries."

At present, the unit is under construction at Daewoo Shipbuilding & Marine Engineering (DSME) in South Korea and will enter charter starting in the first half of 2018 after completion.

FSRU also has the capacity to reload LNG cargo to shuttle tankers and also send gas through pipelines.

MOL said that the company will continue its efforts and its focus will be on developing the LNG secondary transport and LNG fuel supply businesses in Central and South America region.

The group is also seeking new opportunities in the FSRU field.

After receiving gas from LNG carriers, FSRUs regasify it and later on transmit it under high-pressure to pipelines on land.

Image: FSRU under construction. Photo: courtesy of Mitsui OSK Lines.