Petronas is limbering up to confirm deals for its LNG Canada volumes on three optional newbuildings held by Hyundai LNG Shipping at Hyundai Heavy Industries.
Newbuilding sources said the Malaysian state-owned energy giant is expected to sign charter contracts on the 174,000-cbm LNG carriers soon, doubling its number of vessels for the Shell-led liquefaction project to six.
They said the optional vessels, which were negotiated earlier this year, will probably appear cheap compared with current newbuilding quotes.
Hyundai LNG Shipping contracted three LNG carriers against contracts from Petronas in April. They are listed on Clarksons’ Shipping Intelligence Network database as priced at $189.4m each.
Brokers said South Korean shipbuilders are making offers on LNG carrier berths at $210m and over.
The incoming vessels look set to boost Hyundai LNG Shipping’s fleet to 13 vessels, seven of which will have been contracted this year.
Order haul
TradeWinds has reported that 30 LNG carrier newbuildings of all sizes were ordered in the first half of 2021. At least 13 more have been contracted since the start of July.
Petronas’ original trio of newbuildings are due to be delivered from the second quarter of 2024 to dovetail with LNG Canada, whose chief executive, Peter Zebedee, has said it is on track to produce its first cargo by the middle of this decade.
Petronas said the trio would primarily be used to lift cargoes from the $30bn, 14-million-tonne-per-annum, two-train project at Kitimat, British Columbia.
It has signed up to supply Vitol with 0.8 mtpa of LNG over a 15-year period, with the bulk of volumes coming from LNG Canada.
In April, Petronas said the first three LNG Canada newbuildings will expand its global LNG fleet to 27 vessels, including small, medium and large ships.
Shell holds a controlling 40% stake in LNG Canada, with Petronas on 25%, PetroChina and Mitsubishi Corp both owning 15% and Kogas 5%.
