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BP/GDF-Suez to Progress Negos to Charter Tankers for U.S. LNG
The negotiations by BP and GDF Suez for LNG tankers to pick up U.S. LNG are to progress towards the New Year. BP has a contract to buy 4.4 million tonnes per year of LNG produced at Train #2 of Freeport LNG, while GDF-Suez is to receive LNG under the natural gas toll-liquefaction agreement with Cameron LNG.

Generally speaking, the volume that one LNG tanker can transport from the U.S. Gulf through the new Panama Canal is about 400,000 tonnes per year. This means as many as nearly 20 tankers will be required for the LNG transportation to Asian consumers, if BP/GDF-Suez sell all the LNG under the two agreements to Asia, otherwise the number of the required tankers by the two companies will vary.

So far, BP has concluded long-term portfolio contracts with Kansai Electric Power (0.5 million tpy), Tokyo Electric Power (1.2 million tpy) and with CNOOC (1.5 million tpy). BP's portfolio presumably includes the LNG from Freeport LNG. GDF-Suez also already sold the LNG from Cameron to Tohoku Electric Power (270,000 tpy) and CPC (800,000 tpy). Delivery terms of the sales are all on an Ex-Ship basis on tankers to be chartered by the sellers.

For reference, GAIL (India) who bought U.S. LNG from Sabine Pass and Cove Point on an FOB basis already started negotiations to charter 10 - 15 tankers for the LNG shipments under its sales contracts of 5.8 million tpy (3.5 million tpy from Sabine Pass and 2.3 million tonnes from Cove Point) of LNG.
last modified : Fri 05 Dec, 2014 [10:05]
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