Total-led Mozambique LNG is set to select within weeks the shipowners it plans to work with to provide up to 17 LNG carriers to serve its under-construction project in east Africa.
Sources close to the business said all seven pre-qualified owners remain in the frame for the work. They named Japan’s three largest shipowners — MOL, NYK Line and K Line — along with John Angelicoussis’ Maran Gas Maritime, Teekay LNG, GasLog and BW LNG.
They indicated that newbuildings will be selected over existing tonnage, although owners had initially been invited to offer in on both.
TradeWinds understands that a final decision is due to be made next month.
Parallel process
In a parallel tender process being run with shipyards, industry sources said that just Hyundai Heavy Industries and Samsung Heavy Industries are left in the frame to build ships for the project.
Letters of intent for at least eight berths have been signed with each yard, LNG sources said.
Owners would be married with berths at either yard.
Clarksons is understood to be acting as the broker on the project.
The Mozambique LNG newbuildings are a key piece of project business that shipyards have been banking on for this year, along with vessels for Russia’s Arctic shipments and the huge slew of vessels needed by Qatar.
Mozambique LNG achieved project sanction in June, with Total buying out the project’s former developer Anadarko’s stake for $3.9bn in September.
The 12.88-million tonnes per annum, two-train project is a huge development for the country, but its potential is even larger as reserves are in place to expand it to up to 50 mtpa in future.
Start-up is planned for 2023 and most of the production has been sold under term contracts.
Construction of the new plant is underway at a site on the Afungi peninsula in northern Mozambique.
Full steam ahead
Personnel following the project said work on site is moving at “full steam ahead” with about 5,500 workers deployed, and their numbers expected to rise to 14,000 at the build’s peak.
Total controls a 26.5% stake in Mozambique LNG, with local energy company Mitsui E&P Mozambique Area 1 holding 20%, ENH Rovuma Area Um 15%, ONGC Videsh, Beas Rovuma Energy Mozambique and BPRL Ventures Mozambique with 10% each, and PTTEP Mozambique Area 1 the remaining 8.5%.
Separately, the ExxonMobil-led 15.2-mtpa Rovuma LNG is tipped to be green-lighted in April. 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.
