INEOS Group, the global petrochemicals manufacturer with over 190 facilities in nearly 30 countries and whose Chairman Jim Ratcliffe is seeking a stake in soccer team Manchester United, has entered the LNG shipping fleet market for the first time to transport US export volumes.
Ratcliffe, who is a trained chemical engineer who used to work for ExxonMobil Chemicals and now has joint ventures with Chinese groups like Sinopec, was the first to import US shale gas into Europe. His other interests include soccer team investments.
INEOS Energy Trading signed agreements with the Japanese shipping company Mitsui OSK Lines (MOL) for two newbuild LNG carriers to be used for the importation of LNG into Germany from the United States.
Port Arthur LNG
These agreements are a significant shipping move by INEOS following the long-term Sales and Purchase Agreement signed with US utility Sempra for 1.4 million tonnes per annum of cargoes from the planned Port Arthur LNG export project in Texas.
Ratcliffe’s company purchased the volumes to ship to its long-term regasification capacity holding at Brunsbüttel, the proposed onshore German LNG import terminal on the Elbe River north of Hamburg.
The small Brunsbüttel port is currently operating a floating storage and regasification facility (FSRU) for LNG shipments to replace the cut-off supplies of Russian pipeline natural gas to Germany and the European Union via the North Stream routes.
“INEOS will capitalise 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,” explained INEOS.
The comoany said that both LNG vessels will have a capacity of 174,000 cubic metres and are being built at Daewoo Shipbuilding & Marine Engineering at Okpo in South Korea and would be equipped with the latest MAN Energy Solutions engines.
“It was extremely important that we selected modern, efficient vessels with environmental considerations embedded in the design,” said David Bucknall, Chief Executive of INEOS Energy Trading.
“We agreed an engine type and vessel specification with MOL that we believe is optimal for reducing carbon emissions and methane slip,” Bucknall explained.
Opportunities
“We will continue to work with MOL to identify further opportunities to reduce emissions as both companies work towards a net zero future,” the CEO stated.
Whilst INEOS has an extensive fleet of ethane and naphtha carriers, these two vessels signify their first entry into the LNG carrier market.
“We are delighted to be working with MOL, who have a great deal of experience shipping LNG and an excellent reputation,” Bucknall said.
“We look forward to developing the relationship, both during the charter period and beyond,” he added.
