Conclusion of Time Charter Contract for the Third LNG Carrier
December 22, 2004
Tokyo Electric Power Company (TEPCO) and Nippon Yusen Kaisha (NYK) concluded a time charter contract* for an LNG carrier for Darwin LNG Project between their respective subsidiaries on December 22, 2004. This is the third LNG carrier project for TEPCO.
TEPCO, aiming to diversify transaction formats in relation to LNG procurement and to reduce procurement costs, has engaged in the business of holding and operating LNG carriers since 2000. In October 2003, TEPCO began to operate the first LNG carrier for Malaysian LNG Project. Preparing for the commencement of operations for the second LNG carrier for Darwin LNG Project in 2006, TEPCO has been considering the third LNG carrier, simultaneously.
By concluding the time charter contract, TEPCO's subsidiary, LNG Marine Transport Ltd. will charter the carrier from the NYK Group and manage operations. Approximately one million tons of LNG per year will be transported from Australia for 15 years after operations commence in April 2008.
TEPCO and NYK continue to strive for the stable and economical procurement of fuel.
| * Note : | Time charter contract is a type of contract which is concluded between a user and an owner of a carrier. Paying the charter fee to the owner, the user will charter the carrier from the owner for a certain period specified in the contract. |
- Outline of LNG Carrier (Third Carrier)
- Outline of Management Company of LNG Carrier (Third)
- Outline of Darwin LNG Project
- Bayu-Undan Gas Field
| (1) | Cargo tank capacity | : | 145,400 cubic meters(LNG equivalent: approx. 67,000 tons, 4 moss style tanks) |
| (2) | Gross tonnage | : | 123,000 tons |
| (3) | Length overall | : | 288 meters |
| (4) | Breadth | : | 49 meters |
| (5) | Main engine | : | Steam turbine |
| (6) | Speed | : | 19.5 knots |
| (7) | Operating control | : | LNG Marine Transport Ltd. |
| (8) | Carrier operator | : | Nippon Yusen Kaisha |
| (9) | Shipbuilder | : | Nagasaki Shipyard & Machinery Works, Mitsubishi Heavy Industries, Ltd. |
| (10) | Commencement of service | : | March 2008 (scheduled) |
| (11) | Name of ship | : | Undecided |
| (1) | Company name | : | LNG Marine Transport Ltd. | ||||||
| (2) | Address | : | 1-1-1, Shimbashi, Minato-ku, Tokyo | ||||||
| (3) | Representative | : | Makoto Kawaguchi, President | ||||||
| (4) | Description of Business | : | Marine transport of liquefied natural gas and agency business of such | ||||||
| (5) | Capital | : | 50 million yen | ||||||
| (6) | Equity ownership | : |
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| (7) | Establishment | : | October 5, 2004 |
| (1) | Overview | : | The Bayu-Undan Gas Field is located 250 kilometers off the southern coast of Timor-Leste and 500 kilometers offshore from Darwin in Australia. The project will deliver the gas to Darwin through a sub-sea pipeline, and liquefy and sell. | ||||||
| (2) | Seller | : | Darwin LNG Pty. Ltd. | ||||||
| Buyers | : | Tokyo Electric Power Company (TEPCO) Tokyo Gas Co., Ltd. |
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| (3) | Contracted volume | : |
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| (4) | Contract term | : | 17 years from 2006 | ||||||
| (5) | Contract format | : | FOB (Buyers, namely TEPCO and Tokyo Gas, will arrange the LNG carriers and transport LNG) |
| Location | : | The Joint Petroleum Development Area of Timor-Leste and Australia 250 kilometers off the southern coast of Timor-Leste and 500 kilometers offshore from Darwin in Australia |
| Estimated recoverable hydrocarbons : | ||
| 3.4 trillion cubic feet of natural gas 400 million barrels of condensate and liquefied petroleum gas |
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