Mitsui OSK Lines (MOL) has signed an agreement with the Government of Oman giving MOL part ownership in two new building LNG carriers for the transportation of liquefied natural gas (LNG) for Oman's third LNG liquefaction plant.
With the addition of these two carriers, the Omani government and MOL now jointly own four LNG carriers. This will increase MOL's involvement in the Oman shipping industry and related business activities.
Oman has seen the production of liquefied natural gas (LNG) grow significantly since 2000, when the Sultanate’s first and second LNG liquefaction plants were completed with a production capacity of 6.6 million tons per annum. Oman will soon be able to produce around 10 million tons of LNG per annum, once the third LNG liquefaction plant is completed.
Last year, Omani authorities invited international bidding for the newbuilding of LNG carriers, placing a firm order in July 2003. MOL assisted the government during the bidding process, in the capacity of technical advisor in the evaluation of bidding documents and negotiation with shipyards. These vessels will be the first LNG carriers for which the Oman Shipping Company, a national shipping company established in May, will handle the full responsibilities of an ocean shipping business, namely construction supervision, ownership, ship management, and voyage operation.
MOL has experience in the transportation of LNG dating back to 1983, when it launched a project to supply customers in Japan with LNG from Indonesia. Since then, MOL has steadily increased its presence in the LNG trade, and is now involved in 22 transportation projects. MOL participates in the ownership or operation of 56 LNG carriers, including several under construction, of a total of around 200 carriers worldwide. — (menareport.com)
© 2004 Mena Report (www.menareport.com)
