ExxonMobil has set aside a series of up to 14 newbuilding berths for LNG carriers in South Korea as it prepares to extend its shipping position to match its project requirements.
Newbuilding sources said the US energy giant has reserved the slots at Samsung Heavy Industries, after singling out the yard as its preferred builder last year.
The move mirrors Shell’s LNG newbuilding strategy at Hyundai Heavy Industries, where it has detailed ship specifications and reserved berths, matching shipowners with eight of these last month.
In October, ExxonMobil’s shipping arm, SeaRiver Maritime, signed 15-year time charter deals with MISC for a pair of LNG carrier newbuildings, which the Malaysian owner had contracted at SHI.
The 174,000-cbm vessels, priced at a total of $405m, are due to be delivered by March 2023.
They will have X-DF propulsion and Mark III Flex Plus-type containment systems. SHI said they will also be kitted out with re-liquefaction systems and its latest smart-ship solutions.
Alex Volkov, vice president of global LNG marketing at ExxonMobil, said in October that the hook-up was “an integral part of ExxonMobil’s commitment to provide flexible solutions in the open and dynamic LNG marketplace”.
“The addition of these two vessels will help us build a competitive LNG value chain as ExxonMobil continues to grow its global gas portfolio and expand supply positions to meet evolving needs of our customers,” he added.
TradeWinds reported in September that ExxonMobil had singled out MISC after private negotiations with several owners for the first in a series of LNG vessels it planned to order at SHI.
Shipowning sources said ExxonMobil was offering charter hire periods of between three and 15 years on the ships.
It had initially spoken to owners about a requirement for up to eight ships, with two firm vessels and six optional slots. But the revelation on its berth reservations suggests it is targeting a larger number of vessels.
Industry players said ExxonMobil has been building a shipping team in the US as it expands its portfolio.
The company needs tonnage to lift cargoes from the planned expansion phase of its existing 8-million-tonne-per-annum PNG LNG project in Papua New Guinea, in which it is partnering exploration and development company Oil Search and French energy major Total to double the plant’s capacity.
ExxonMobil is also expected to sanction the 15.2-mtpa Rovuma LNG project in Mozambique in the first half of this year. The project is targeting a 2024 start-up and is expected to require at least eight LNG carriers, depending on the type and destination of cargo sales.
ExxonMobil and Shell are seen to have tied down the LNG newbuilding berths they require in advance of Qatar’s huge 80-vessel requirement, which is expected to move forward with shipyards this year.
Total is also expected to return to shipbuilders this year for LNG carriers, after honing its design requirements with yards in 2019.
