TOKYO -- Mitsui O.S.K. Lines will invest in a liquefied natural gas terminal to be built in western India, the Japanese shipper said Friday, seeking stable long-term profit as containerships and other marine operations are prone to market fluctuations.
Mitsui O.S.K., seen putting tens of millions of dollars into the effort, will operate and manage the terminal's two core facilities -- a floating storage unit and a floating, storage and regasification unit.
The shipper also will contribute technology during construction. The project marks the first time a Japanese shipper participates in operating such a facility, according to the company.
The terminal, planned for the state of Gujarat, will receive and store LNG from transport ships. It will convert the material to gas and pipe it to points of consumption according to demand. Operations are expected to begin in 2020, with an annual supply capacity of 5 million tons.
LNG demand looks likely to grow in India, where the uses include power generation. The new terminal is expected to meet one-sixth of India's LNG demand in the year operations start.
The Japanese shipper intends to concentrate investment in LNG operations and other businesses promising stable long-term profit, a medium-term management plan released in April said.