US energy major ConocoPhillips has launched a hunt for a large tranche of LNG carrier newbuildings.
Several industry sources have detailed to TradeWinds that ConocoPhillips is seeking up to eight vessels for the large volumes of LNG it has signed up to buy from the US.
The major is understood to have gone out to shipowners initially with its enquiry.
But recent talk has emerged that the company has been in discussions with QatarEnergy on LNG berths amid speculation that it may have engineered some kind of slot agreement swap to give it access to particular delivery positions.
Subsequent to this article first being published, QatarEnergy has said this is incorrect.
The company told TradeWinds: “There is no substantiated information or confirmation that a slot agreement swap has occurred or is planned to take place.
“QatarEnergy's slots are reserved for its own needs.”
QatarEnergy is sitting on a large number of pre-reserved slots at South Korea’s big three shipyards as part of its huge LNG newbuilding project.
The US major has been working closely with the Qatari LNG producer and is a partner in its North Field Expansion project. In late 2022, ConocoPhillips signed two long-term deals with QatarEnergy for the supply of LNG into Germany’s planned Brunsbuttel terminal.
TradeWinds has contacted ConocoPhillips about its LNG newbuilding enquiry but has yet to receive any response to its questions.
Industry watchers following the major’s enquiry said ConocoPhillips needs the LNG tonnage to lift the five million tonnes per annum of LNG it signed up to buy from US producer Sempra Energy.
In November, the Houston-headquartered energy company inked a 20-year deal with Sempra Infrastructure to buy the volumes from Phase 1 of the producer’s under-construction, 13-mtpa Port Arthur project in Texas.
ConocoPhillips also bought a 30% stake in the upcoming US project, will manage the feedgas supply requirements for the first phase of the development and has options to participate in subsequent phases.
In April, the major said it planned to spend $3.7bn to more than double its LNG portfolio in the next 10 years. Some $1.9bn of this has been set aside for the Port Arthur project, which is due to start up in 2027.
The company, which is also an equity partner in Australia Pacific LNG in Queensland, Australia, has an option to take interests in phase two of Sempra’s Energia Costa Azul LNG project in Baja Mexico but has indicated it is looking at selling its Port Arthur volumes first.
ConocoPhillips’ LNG newbuilding enquiry is one of several expected to follow in the coming months as companies and energy majors signing up to long-term purchases of LNG try to secure elusive shipbuilding berths or modern tonnage that can offer them maximum trading flexibility.
Chevron has already moved on LNG tonnage this year, locking in the first 2028-delivering vessels from a South Korean shipbuilder, with a two-ship order at Samsung Heavy Industries. The major is believed to be sitting on several optional slots with the yards.
All eyes are on one of the upcoming US liquefaction project NextDecade’s Rio Grande LNG and those buying from it, with the developers expected to take a final investment decision on it shortly. Officials from the project’s shipping arm are understood to have been touring shipyards recently to assess the berth and pricing outlook for LNG carriers.
There are currently over 330 LNG carriers on order representing over 52% of the global fleet.
The most recent newbuildings were contracted at stiff prices over the $261m mark amid yard claims that 2027-delivery slots are now very limited.
This article has been updated since first published with a statement from QatarEnergy.
