MOL expands further into LNG

MOL has signed contracts for joint ownership of four additional new LNG carriers with Oman Shipping Company (OSC) and all four newbuildings will be chartered by OSC. As a result, MOL will have joint ownership in a total of six LNG carriers, including two already in service. Two of the 145,000 cubic metre ships will have the Moss containment system and are being built by Kawasaki and Mitsubishi respectively. The other two are under construction at Samsung and will be fitted with the GTT membrane tanks.

Itochu Corporation and Mitsubishi Corporation, which recently signed an LNG sale and purchase agreement with Oman, decided to participate in the vessel ownership joint venture and will also sub-charter the LNG carrier respectively.

Oman is now concentrating on the development of its LNG production. It has had two production trains with 6.6 million tons per year capacity in operation since 2000. The third train, called the Qalhat LNG, is under construction and will start production in 2006. With the third train, Oman will have a total capacity of 10 million tons per year. The four new LNG tankers will transport LNG produced by Qalhat LNG.

The relationship between MOL and the OSC started with the joint ownership of the Sohar LNG, which sails under a long-term charter with Oman LNG L.L.C. In July 2002, another joint venture ship ownership program called Muscat LNG was formed. In May 2003, MOL and the Omani government concluded a services agreement under which MOL will provide technical support in every aspect of shipping. Pre-delivery work, ship management, and voyage operation of the four new ships will be handled by OSC with technical support and assistance from MOL.