BP Expands LNG Shipping Fleet
BP is to take delivery of six state-of-the-art LNG carriers to “support its broader shift to natural gas.”
It said October 4 that its finance partners KMarin and ICBC Leasing are investing over $1bn in the six tankers that will join BP Shipping’s fleet in 2018 and 2019. They will help service a 20-year liquefaction contract with Freeport LNG in Texas, and other LNG projects in BP’s global portfolio.
“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. The new ships are designed to be about 25% more fuel-efficient than their predecessors, and each come equipped with an onboard reliquefaction plant, enabling more LNG to be delivered to the market.
BP’s global supply and trading CEO Alan Haywood said: “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.”
BP’s portfolio includes stakes in equity LNG projects in Australia, the UAE, Indonesia, Trinidad and Angola. From 2022 it is to offtake all production from east Africa’s first floating LNG facility, the Eni-led Coral FLNG venture offshore Mozambique.
Freeport LNG said in February 2013 that it had signed a binding 20-year liquefaction tolling agreement (LTA) with BP for 4.4mn metric ton/yr, equivalent to the entire capacity of its second train. The LTA with BP will start once its 2nd train is completed, and will enable BP to liquefy its own gas at the facility.
Freeport LNG's first liquefaction train, booked to other companies, is now due for completion end-2018.
Mark Smedley