US energy major ExxonMobil is close to choosing a shipbuilder to construct up to eight LNG carrier newbuildings.
Industry sources described discussions with yards as “at an advanced stage” and said final selection is “imminent”.
They pointed out that while Texas-headquartered ExxonMobil initially requires just two LNG carrier newbuildings, its order could become much larger as it has also requested six optional vessel slots.
Delivery dates from the first quarter of 2022 were requested on the two firm vessels suggesting that orders could be placed this year.
Beating a rush
Yards submitted their initial offers on the business in April with industry players noting ExxonMobil’s enlarged newbuilding team had approached yards ahead of its LNG project partner Qatargas' 80-vessel enquiry.
Industry sources have suggested that ExxonMobil may follow some of its competitors in making a return to shipowning by contracting the vessels directly. Alternatively, the major could opt to find owners to take on the slots at the yard it selects.
ExxonMobil is seeking the initial LNG newbuildings to lift cargoes from the planned expansion phase of its existing 8-million-tonnes-per-annum PNG LNG project in Papua New Guinea, in which it is partnering Oil Search and Total to double the plant’s capacity.
It appears to be moving ahead with the vessel requirements despite reports that the new government in Papua New Guinea wants to renegotiate the terms of the expansion project — a move that could delay or sink the plans.
But aside from PNG LNG, ExxonMobil is expected to need vessels to lift cargoes from its 7.6-mtpa Rovuma LNG project in Mozambique from 2024.
Influx of business
Rovuma has been flagged up for sanction this year and could require a further eight LNG carriers, depending on the destination of cargo sales.
ExxonMobil is also developing new US liquefaction project Golden Pass LNG in partnership with Qatar Petroleum and ConocoPhillips.
A final investment was taken on the project early this year. But the LNG carriers needed for this are being sourced by Qatargas under its large 80-vessel requirement.
Yards are poised for an influx of project business with both ExxonMobil and Qatargas’ potential orders firmly on their radar, along with an expected raft of about 16 ships that will be required for Anadarko’s Mozambique LNG project and a similar number of newbuildings for Novatek-led Arctic LNG 2.
