Portugal’s Galp Energia is in final discussions with three shipowners as it closes in on its preferred choice for a single time-chartered vessel.

TradeWinds understands that Evangelos Marinakis-led Capital Gas, Denmark’s Celsius Shipping and Pan Ocean of South Korea are the finalists left in the running for the deal with the energy utility.

Both Celsius and Capital Gas are sitting on unfixed LNG carrier newbuildings that are on order in South Korea.

Celsius has four uncommitted vessels on order at Samsung Heavy Industries, two of which are slated to be delivered this year with the other pair to follow in 2021.

Capital Gas contracted seven LNG newbuildings at Hyundai Heavy Industries, of which four would appear to remain unfixed.

Brokers said about one-third of the LNG carrier newbuildings currently on order have no firm contracts.

Deluge of offers

This publication reported in March that Galp had been deluged with offers from at least 20 companies after putting out a request for bids at the start of this year.

The responses were received shortly before the Covid-19 pandemic started to grip markets in Europe and there has been little update on the business in the interim. But sources following the process said the energy company is now homing in on its preferred choice.

Galp — which is also partnered with developers on the yet-to-be sanctioned Rovuma LNG and Coral FLNG projects for east Africa — is looking for an LNG vessel that it can start using in the first half of 2022 for up to three voyages before kicking off full operations with the ship in the second half of that year.

The company needs a vessel to ship the 1m tonnes per annum of LNG it has signed up to buy over a 20-year period from Venture Global LNG’s under-construction Calcasieu Pass facility on the US Gulf coast.

The 10.8-mtpa liquefaction plant, the first of three facilities being developed by Venture Global, is scheduled for start-up in 2022.

The US company is using a mid-scale modular form of construction for its plants, which it said will reduce costs, and has posted photos of the first cold boxes arriving on site in June.

US liquefaction developer Venture Global LNG ships in its first cold boxes for the company's Calcasieu Pass, which will supply volumes to Galp Energia. Photo: Venture Global