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LNG World Shipping

Updated: BP lands US$1Bn to finance LNG newbuildings

Fri 06 Oct 2017 by Karen Thomas

Updated: BP lands US$1Bn to finance LNG newbuildings
BP launched its LNG fleet-renewal programme last year

KMarin and ICBC are investing more than US$1Bn in six LNG carrier newbuildings that BP has ordered from Daewoo Shipbuilding & Marine Engineering (DSME) for delivery in 2018 and 2019, to deliver cargoes from US export start-up Freeport LNG.

BP has confirmed to LNG World Shipping that the ships in question are hulls 2441, 2442, 2443, 2444, 2445 and 2446, six 173,400 mᶾ LNG carriers that BP contracted from DSME three years ago, see below.

All feature low-speed, dual-fuel high-pressure propulsion and are being fitted with GTT’s No 96 containment systems.

The six newbuildings support the 32-ship fleet-renewal programme that shipowner and charterer BP launched last year. So far, BP has taken delivery of 26 vessels and redelivered 22 vessels. It says the six DSME LNG carrier newbuildings “will support the group’s growing LNG portfolio and its broader shift to natural gas”.

“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,” BP Shipping chief executive Susan Dio said in a statement.

All six are fixed on 20-year charters to LNG export project Freeport LNG, due for completion by year-end 2018. Freeport LNG Development partners CB&I, Zachry and Chiyoda are investing some US$14Bn in the three-train, 13.2 million tonne a year (mta) project at Quintana Island in Texas.

BP has a 17-year supply contract with Japan's Tokyo Electric and a 20-year contract with PTT of Thailand for its Freeport LNG cargoes.

Freeport LNG has applied to the Federal Energy Regulatory Commission (FERC) to build a fourth train to produce 5.1 mta.

The project has contracted 13.4 mta under use-or-pay liquefaction tolling agreements with Japan-based JERA, Osaka Gas and Toshiba, with BP Energy and with SK E&S LNG of South Korea.

BP owns seven LNG carriers; four of 155,000 mᶾ and three of 138,000 mᶾ. It has one LNG carrier on short-term and three on long-term charters.

 

BP orderbook/newbuildings fixed to BP business

SOUTH KOREA              
Hull no Shipowner Capacity, m Delivery Charterer Containment Class Propulsion Details

Daewoo Shipbuilding & Marine Engineering (DSME), Okpo

       
2460 Chandris/K Line 173,400 2018 BP GTT No96 LR LSDF (HP) BP business
2464 Chandris/K Line 173,400 2018 BP GTT No96 LR LSDF (HP) BP business
2441 BP Shipping 173,400 2018 BP GTT No96 LR LSDF (HP) BP business
2442 BP Shipping 173,400 2018 BP GTT No96 LR LSDF (HP) BP business
2443 BP Shipping 173,400 2018 BP GTT No96 LR LSDF (HP) BP business
2444 BP Shipping 173,400 2019 BP GTT No96 LR LSDF (HP) BP business
2445 BP Shipping 173,400 2019 BP GTT No96 LR LSDF (HP) BP business
2446 BP Shipping 173,400 2019 BP GTT No96 LR LSDF (HP) BP business

Hyundai Samho Heavy Industries (HSHI), Samho-Myun

       
S856 Teekay 164,000 2019 BP GTT MkIII DFDE BP business
S857 Teekay 164,000 2019 BP GTT MkIII DFDE BP business

Source: LNG World Shipping, August 2017

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