ExxonMobil appears poised to join the dash for gas with an enquiry to shipowners and shipyards for up to eight dual-fuel VLCCs.
Industry sources said the world’s largest listed energy group is looking to follow the lead of rival Shell by seeking four firm vessels plus four options.
One tanker player confirmed that ExxonMobil has made approaches, with a few shipping companies having expressed interest in the project.
Shipbuilders in South Korea, China and Japan all declined to comment when asked if they will be participating in the project. An ExxonMobil spokesman said he does not comment on "market rumours or speculation" about its business plan.
Shipbuilding specialists said South Korea’s Big Three — Hyundai Heavy Industries, DSME and Samsung Heavy Industries — are likely to bid for the business.
VLCC construction
Most big Chinese shipyards, such as Shanghai Waigaoqiao Shipbuilding, Dalian Shipbuilding Industry Co, Sino-Japanese Nantong Cosco KHI Ship Engineering and privately owned New Times Shipbuilding, are able to construct VLCCs, one shipyard expert said.
But, he added, they would have to buy the type-C LNG tanks from third-party suppliers as they do not manufacture such equipment themselves.
The newbuildings’ delivery dates and charter periods are not known.
“Shipyards are likely to be able to deliver the tankers in 24 to 26 months after signing the newbuilding contract,” a shipbuilding specialist said.
Anglo-Dutch Shell was the first energy company to be reported as being out in the market talking with shipowners about LNG-fuelled VLCC tonnage.
Total in the mix
It is understood to be looking for up to four ships and is offering charter hire periods of up to five years.
Euronav, Frontline and Capital Maritime & Trading are said to be in discussions with Shell.
France’s Total has also been pursuing an LNG-fuelled VLCC newbuilding project.
Last week, Evangelos Marinakis-controlled Capital Maritime & Trading was reported to have booked up to 14 LNG-fuelled VLCC newbuildings worth more than $1.5bn at HHI.
It was said to have signed a letter of intent for 10 firm dual-fuel newbuildings, plus four options, for delivery in the second half of 2021 and the second half of 2022.
The 300,000-dwt vessels will each be fitted with two on-deck LNG bunker tanks that can carry a combined 7,500 cbm of fuel.
They are priced at about $110m each.
Capital Maritime & Trading is believed to be in discussions with Shell and several other potential end users on the ships.
It is also said to be prepared to trade some of the pioneering vessels on a spot basis.
