Asian ship finance giants KMarin and ICBC Leasing are investing more than $1bn in six LNG tankers which BP will take on charter for 20-years, predominantly to serve the Freeport LNG facility in Texas.
The ships will deliver in 2018 and 2019. BP has yet to reply to Splash which shipyards are building these LNG carriers.
“These vessels will significantly increase BP’s ability to safely transport LNG to anywhere in the world, directly supporting BP’s global natural gas strategy,” said BP Shipping CEO Susan Dio. “They also will be among the most fuel-efficient and technically advanced LNG tankers ever built.”
The new ships are designed to be about 25% more fuel efficient than their predecessors. They also will be fitted with a reliquefaction plant.
BP has a long-term contract for 230trn BTUs per year of LNG capacity in the Freeport LNG facility. The Freeport LNG liquefaction facility is under construction, and the first train is expected to be operational by the end of 2018.
“BP has built a diverse LNG portfolio spanning both established and emerging markets,” said Alan Haywood, CEO of BP’s global supply and trading business. “Freeport is the latest example of how BP continues to expand the reach of our LNG business and serve our customers with flexible solutions through leveraging our scale, connectivity and relationships – and another sign of our commitment to remaining at the forefront of this rapidly growing and important global business.”
The 2017 BP Energy Outlook forecasts that global LNG trade will grow seven times faster than pipeline gas trade, such that by 2035 it accounts for around half of all globally traded gas. The newly expanded BP Shipping fleet will deliver LNG volumes to a range of BP customers around the world.
Great business for the shipyard that builds these high-tech vessels ! Not to mention the manning side of the deal.