BPs LNG Carriers and Oil Tankers Fleet: An Overview and Analysis

Introduction

As of August 2023, BP operates a significant fleet of LNG carriers and oil tankers, integral to its shipping and logistics operations. This fleet plays a crucial role in the transportation of natural gas and petroleum products, supporting BP's global supply chain and energy network. However, the numbers of vessels in this fleet can fluctuate due to various factors, such as sales, acquisitions, and changes in fleet operations.

In recent news, BP has announced plans to add six new generation LNG tankers to its fleet, enhancing its LNG shipping capacity. This move is particularly noteworthy given the importance of such tankers in the export of LNG from the US to Asia. With these new additions, BP's focus on improving fuel efficiency and reducing operational costs is evident, aligning with global trends in the maritime industry.

BP's Current Fleet Composition

According to BP's official corporate website, the company currently lists 49 LNG and oil tankers. Additionally, BP charters around 600 various vessel types, showcasing its extensive logistical capabilities. These figures highlight the scale and diversity of BP's shipping fleet, which is essential for its global operations.

New Generation LNG Tankers

Recently, BP has committed to adding six new generation LNG tankers to its fleet. These modern vessels are designed to be significantly more fuel-efficient compared to their older counterparts, with a reported 25% improvement in fuel efficiency. This is a commendable initiative that reflects BP's commitment to reducing environmental impact and optimizing operational costs.

The enhanced fuel efficiency of these new LNG tankers is particularly advantageous when transporting LNG from the US to Asian markets. A round-trip voyage of about 60 days can consume approximately $5 million worth of fuel, which is a substantial part of the overall cost. By reducing this expenditure, BP can significantly improve its cost competitiveness and enhance the profitability of each voyage.

The fuel advantage is further enhanced by the fact that most modern LNG tankers use LNG as their primary fuel, unlike older vessels which burned residual fuel oil or bunker fuel. This shift not only reduces costs but also minimizes emissions, aligning with current environmental regulations and standards.

The cost of diesel fuel, even in bulk quantities, stands at around $1.50 per gallon, or approximately $10.80 per million British thermal units (mmBtu). In comparison, LNG purchased at the export point is far cheaper as a marine fuel. For instance, LNG from Sabine Pass is currently priced at around 6-7 mmBtu, making it significantly more economical compared to diesel fuel. The savings from using LNG as a fuel can range from tens of thousands to millions of dollars per voyage, particularly for US to Asia routes.

Further, the fuel tank design for LNG tankers is integrated into their base design, reducing the need for additional expenses associated with retrofitting. This further enhances the overall cost-effectiveness and operational efficiency of BP's new generation LNG tankers.

Conclusion

BPs commitment to upgrading its fleet with new generation LNG tankers is a strategic move that aligns with the company's goals of environmental sustainability and operational cost optimization. As the global energy landscape continues to evolve, adaptations such as these will be crucial for maintaining a competitive edge in the maritime sector.