Japan Bank for International Cooperation and MUFG Bank have agreed to provide a US$71 million project loan to finance a floating storage and regasification unit (FSRU) in Senegal.

The loan was signed with Senegal LNGT Company (SLNG), a unit of Mitsui O.S.K. Lines (MOL) incorporated in the Marshall Islands. JBIC is contributing up to US$35 million to the co-financing.

The SLNG vessel will regasify liquefied natural gas (LNG), which will then be used to generate electricity on an LNG power ship. The electricity will be sold to Societe nationale d'electricite du Senegal, a state-owned power company.

According to JBIC, the Japanese government endorses in its Basic Plan on Ocean Policy the strengthening of the international competitiveness of Japanese marine industries, and advocates in the J-Ocean roadmap, which was formulated under the Basic Plan, improving Japanese technical capability and productivity in a wide range of marine development sectors.

Repayments for the loan will be made solely from the cash flow generated by the project.