ITOCHU and MOL in LNG JV with Algerian partners

Sonatrach (Algerian state-owned hydrocarbon company), Hyproc (shipping company wholly owned by Sonatrach), ITOCHU and MOL have agreed to establish a joint venture company (shareholding ratio 25% each) to construct a 75,500 cub metre newbuilding LNG carrier for long-term charter to Sonatrach.

The JV has awarded the order for the new vessel to the Japanese shipbuilder Universal Shipbuilding Corp. The contract also includes an option for a second vessel and deliveries are scheduled in 2007 and 2009). The vessel is a Mediterranean Max size which is designed and optimized to trade in the Mediterranean Sea.

Algeria pioneered LNG export in 1961 and has since become the world?s second largest exporter of LNG amounting to around 20 million tons per year in 2002. Sonatrach plans to use these vessels for the transportation of gas to European countries, mainly in the Mediterranean region. After delivery, these vessels will be operated under joint collaboration between Hyproc and MOL.