Algerian state-run energy company Sonatrach and its shipping arm Hyproc have finally produced their long-awaited tender for two LNG carriers.
The company is asking for companies to partner it on the purchase of one 155,000-cbm LNG carrier with an option to take on a second similar vessel. Sonatrach-Hyproc said it prefers two sisterships for the business.
The delivery range for the firm vessel is from the fourth quarter of 2008 through to the second quarter of 2009. The optional vessel is required between the first and third quarters of 2010.
The Algerian state partners intend to take a 50% stake in the vessels, with the selected shipowners picking up the other half.
Previously, Sonatrach partnered what was then Bergesen, now Bergesen Worldwide Gas, on the 138,000-cbm Berge Arzew (built 2004), and Japanese partners MOL and Itochu Corp on three others, the 145,000-cbm Lalla Fatma NSoumer (built 2004) and two Medmax ships of 75,500 cbm.
Technical bids for the ships are due in by 5 June. Hyproc staff were unavailable for comment on the business.
LNG market players said the first vessel is required as fleet-replacement tonnage for Sonatrach.
The Algerian owner said last year that it plans to retire the first of its six late-1970s and early 1980s-built ships in about five yearstime.
The oldest of these, the 125,260-cbm Mostefa Ben Boulaid (built 1976), comes off long-term hire in 2009.
Earlier this year, there were reports that two of the companys older vessels had been off-hire for some time.
Any options are expected to be targeted for Algerias Gassi Touil integrated LNG project, which Sonatrach is developing in partnership with Spanish utility players Repsol and Gas Natural.
The market is waiting for the Spanish duo to emerge with its own LNG-shipping needs at some stage.
Gassi Touil involves the exploration and production of oil and gas resources in the Gassi Touil, Rhourde Nouse and Hamra regions of Algeria, the construction of a gas liquefaction plant near Arzew, and the marketing of the resulting LNG under a joint venture with Sonatrach.
The equity splits differ for each part of the project but product marketing will be done by a joint company in which Sonatrach holds the majority 51% share.
LNG from Gassi Touil is expected to be sold into Repsol and Irving Oils planned Canaport receiving terminal in New Brunswick, Canada, where Repsol has earmarked all the capacity, and to Spain.
Sonatrach said it wants to have Gassi Touil up and running by early 2009.
© Upstream 2006
