BP awards up to four shipping contracts for Freeport LNG

18 June 2015 | Ludovic Aldersley, Deputy Editor, Global LNG Markets

UK-headquartered portfolio LNG supplier BP has awarded up to four time-charters to two shipowners for the transportation of its 4.4mtpa offtake from Freeport LNG in Texas, USA, ICIS understands.

Calgary-based shipowner Teekay has entered into a 13-year time-charter contract with BP for one new-build carrier, with an option for a second LNG carrier under similar terms, it said in a statement on 15 June. The option is valid until the end of September 2015.

Greek shipowner Chandris, a new-entrant to the LNG market, is also understood to have been awarded a time-charter for one newbuild LNG carrier with an option for a second. Chandris was unavailable for comment before print.

The Athens-based shipowner had earlier ordered a membrane-type newbuild at South Korea’s Daewoo Shipbuilding & Marine Engineering (DSME) shipyard which is scheduled for 2018 delivery.

The Freeport LNG export project is on track to produce first LNG in 2018, although BP will only start lifting LNG from the plant’s second train, due online six to nine months after the first.

In connection with the BP time-charters, Teekay has ordered two 174,000 cubic metre (cbm) newbuilds at South Korea’s Hyundai Samho Heavy Industries shipyard for first quarter 2019 delivery, plus it said on 15 June, an option for an additional third vessel.

Chandris, which has long-running relationships with a number of global oil companies through its tanker business, is understood to have partnered with LNG ship owner and operator, K Line, who will operate the Chandris-owned LNG tonnage.

All vessels associated with the BP time-charters are understood to have 174,000cbm cargo-carrying capacities and will be equipped with fuel-efficient engines.

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