Shipping & Delivery

From Mozambique to Premium Markets

During operations of the onshore LNG facility, the natural gas will be treated, conditioned and cooled to approximately -160⁰C. The liquefaction process reduces the volume of the gas by 600 times, making storage and shipping easier. The LNG will then be delivered from specially designed storage tanks through insulated pipelines to a nearby jetty for offloading into purpose-built LNG ships. 

Image:Shipping and Delivery

Sales and Purchase Agreements establish who is responsible for shipping and where ownership of the LNG cargo is transferred to the buyer. For example, under a free on-board (FOB) SPA, the buyer provides the ships and takes title to the LNG at the seller’s loading terminal. Alternatively, under a delivered ex-ship (DES) SPA, the seller provides the ships and transfer of title to the LNG takes place at the buyer’s discharge port. In either case, ships are typically owned and operated by reputable, experienced LNG ship owner-operatiors under a time charter party agreement.

Once the LNG is loaded onto an LNG ship, the vessel maintains the LNG in liquid state for delivery to markets around the world. The LNG ship essentially acts as the “pipeline” for delivery to other markets around the globe. 

LNG ships come in various sizes, shapes, and designs. There is no “one size fits all.” Ship size is optimized project-by-project. All ships are double-hulled, and the shipping industry has an excellent safety record over the past 40+ years. In addition, LNG is clean, non-corrosive and non-toxic.

One-way voyage times from Mozambique to terminals in northern India might take seven days, whereas an LNG cargo delivery to certain Japanese markets would be approximately 17 days in duration. When the LNG ship reaches its final destination, the LNG is offloaded at the buyer’s re-gasification terminal. The LNG is transferred into storage tanks and then undergoes vaporization, a process that heats the LNG to convert it back into natural gas. The clean-burning natural gas is then delivered to the intended end-users for energy supplies.