Mozambique LNG has sent out an eagerly awaited tender to shipowners for up to 16 LNG carriers.
Sources following the business closely said a select number of pre-qualified owners received the tender documents late last week. One hinted that the number is around 11, while another said it is nearer to seven.
Mozambique LNG is expected to require up to 16 ships and is prepared to consider newbuildings and existing modern vessels.
Up to five South Korean and Japanese shipyards had been checked out for the business. But it is believed the focus has recently shifted to two South Korean shipbuilders — Hyundai Heavy Industries and Samsung Heavy Industries — as the preferred yards for any newbuildings.
In addition to Total’s 26.5%, the other shareholders in Mozambique LNG are local energy company ENH Rovuma Area Um, which has a 15% stake, Mitsui E&P Mozambique Area 1 (20%), ONGC Videsh, Beas Rovuma Energy Mozambique and BPRL Ventures Mozambique (10% each) and PTTEP Mozambique Area 1 (8.5%).
Selected shipowners would be married up with yards on any newbuildings.
Total-led Mozambique LNG took a final investment decision on the first phase of its planned two-train, 12.88 million tonnes per annum project in June.
This first of two LNG developments in Mozambique has huge economic significance, with President Filipe Nyusi describing it as “transformational” for the country. The gas supply available offers the chance to extend the project out to 50 mtpa in the future.
The shipping tender process is almost in line with the original timetable, despite the change in project shareholding, which saw Total take over the lead role by paying $3.9bn for Anadarko’s 26.5% stake in the project in September.
A shipping team for the project, headed by general manager Erick Weston, is understood to remain in place in Singapore in the wake of the Total buy-in.
The shipping requirement from Mozambique LNG is one of the key pieces of business that yards and owners have been waiting for this year, alongside Qatar, ExxonMobil and Russia’s Arctic LNG 2 project.
Start-up is tabled for late 2023, indicating that shipping for the project will probably need to be finalised next year.
The new plant will be built on the Afungi peninsula in northern Mozambique. Feedgas is coming from the Golfinho-Atum field, 40km (21.5 nautical miles) offshore, where 75trn cubic feet of recoverable gas has been located.
The bulk of production has already been sold, with cargoes destined for buyers in Europe and Asia.
