INEOS Energy charters two LNG carriers to create virtual LNG pipeline from the U.S. to Europe
INEOS Energy Trading has today signed agreements with Mitsui O.S.K. Lines (MOL) for two new build LNG carriers, to be used for the import of LNG into Germany from the United States.
These agreements are a significant milestone for INEOS Energy Trading, following the long-term Sales and Purchase Agreement signed with Sempra for 1.4 mtpa of supply out of Port Arthur and the purchase of long-term regasification capacity in Brunsbuttel, the German LNG terminal.
INEOS will capitalize on its experience as the largest transporter of ethane gas from the US to Europe and Asia, to develop a ‘pipeline’ of LNG into Europe to service its own demand, as well as that of select third parties.
Both vessels have a capacity of 174,000 m3. They are being built at the Okpo Shipyard in South Korea and will be equipped with the latest MAN Energy Solutions engines (ME-GA). The addition of Air Lubrication technology and Shaft Generators means the vessels are expected to be highly efficient.
David Bucknall, CEO of Ineos Energy Trading said “it was extremely important that we selected modern, efficient vessels with environmental considerations embedded in the design. We agreed an engine type and vessel specification with MOL that we believe is optimal for reducing carbon emissions and methane slip. We will continue to work with MOL to identify further opportunities to reduce emissions as both companies work towards a net zero future.”
Whilst INEOS has an extensive fleet of ethane and naphtha carriers, these two vessels signify their first entry into the LNG carrier market.
Bucknall adds “we are delighted to be working with MOL, who have a great deal of experience shipping LNG and an excellent reputation. We look forward to developing the relationship, both during the charter period and beyond.”