"We are exercising our options to buy two more ships from Japanese builders to prepare for the expansion of Oman LNG. It makes sense to have our own fleet since it will cut down our shipping costs so we can compete better with other LNG producers," a project official said.

He did not give details but industry sources said that Japanese companies Samsung Heavy Industries and Mitsubishi Heavy Industries would each sign a separate contract with the government of Oman to build the vessels.

"These two ships would be completed by 2006 as new addition to the ones under construction to coincide with the completion of the third train."

In May last year, Oman awarded the same two Japanese companies a contract to build two 145,000-cubic-metre vessels to be delivered on December 2005 and the second in the third quarter of 2006. Officials said then that the government was considering an option to build two more ships from the same companies if the conditions were right.

Oman LNG, which currently produces 6.6 million tons of LNG per year from two trains, said the ships would deliver LNG from a third train which would raise output by 50 per cent. The third train is currently under construction and is expected to be completed in January 2006. By then, the sultanate would have a fleet of six LNG ships.