Initial details are being quoted for the charter hire period, cost and size of the 16 newbuildings that are expected to be inked shortly for Total’s Mozambique LNG project.

Brokers following the vessels said Mitsui OSK Lines and K Line are each expected to sign up to four 170,000-cbm LNG carriers at Hyundai Heavy Industries.

Maran Gas Maritime and NYK Line are due to sign contracts on four 176,000-cbm ships each at Samsung Heavy Industries.

The brokers priced the newbuildings — being contracted by the owners against long-term contracts with the project — at about $187.5m each.

Charter hire periods are understood to be in the range of 12 to 15 years, to dovetail with offtake agreements that have been signed with buyers.

Those working on the project said newbuilding and charter contracts could be inked in July.

Pandemic restrictions

TradeWinds reported on the shipowner/yard split in early June and detailed the provision for an optional 17th newbuilding, which MOL is tipped to win once there is clarity on the LNG buyers’ vessel size restrictions.

The final signing of the contracts on the vessels has been held up by the Covid-19 travel restrictions, according to sources.

They said the parties involved have to go through contracts page by page remotely, which is taking longer than being able to meet face to face with their legal teams to thrash out the final details.

Total reserved berths for the vessels last year, signing letters of intent with HHI and SHI.

Mozambique LNG is East Africa’s first LNG project. It comprises a two-train, 12.88-million tonnes per annum plant, which is being built on the Afungi peninsula and is due to be in operation by 2024.

Some 90% of production from this first phase has been sold to Asian and European buyers. The extent of local gas reserves offers the possibility to expand the project to 50 mtpa.

Total has secured $15bn in financing for the $20bn project, with Reuters reporting that UK Export Finance is expected to add a further $800m soon.