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BP to add six LNG tankers to shipping fleet

EBR Staff Writer Published 05 October 2017

Oil and gas giant BP is taking delivery of six new LNG tankers in 2018 and 2019 to support its expanding global LNG portfolio.

KMarin and ICBC Leasing, the finance partners of BP, are investing more than $1bn in the tankers, which will help the oil giant in addressing the increasing demand for lower-carbon energy sources across the world.

BP says that the new ships would feature the next-generation engine technology and are designed to have 25% more fuel efficiency compared to their predecessors.

The ships will be integrated with reliquefaction plants to facilitate the return of evaporated natural gas in the cargo tanks as LNG to the tanks, thus enabling the ships to offer more of the commodity to the market.

BP Shipping CEO Susan Dio said: “These vessels will significantly increase BP’s ability to safely transport LNG to anywhere in the world, directly supporting BP’s global natural gas strategy.

“They also will be among the most fuel-efficient and technically advanced LNG tankers ever built.”

According to the oil and gas major, the new vessels will help in honoring a liquefaction contract for 20 years with the Freeport LNG facility in Texas. Besides, the tankers will help service other international LNG projects in the company’s global portfolio which include the UAE, Australia, Indonesia, Angola and Trinidad.

BP global supply and trading business CEO Alan Haywood said: “BP has built a diverse LNG portfolio spanning both established and emerging markets.

“Freeport is the latest example of how BP continues to expand the reach of our LNG business and serve our customers with flexible solutions through leveraging our scale, connectivity and relationships - and another sign of our commitment to remaining at the forefront of this rapidly growing and important global business.”

BP holds a long-term contract for 230 trillion BTUs of LNG annually in the Freeport LNG liquefaction facility which is slated to be operational by the end of next year.