Japanese shipbuilder Mitsui E&S Shipbuilding is looking to make a comeback in the LNG market.
It is hoping to construct LNG carrier newbuildings at Yangzi-Mitsui Shipbuilding — its joint venture yard in China. Mitsui E&S and Yangzijiang Shipbuilding (Holdings) announced the partnership last August.
Shinichi Hayashi, Mitsui E&S Shipbuilding’s director and managing executive officer, told TradeWinds there is good demand for LNG carriers for the Chinese inland trade.
“Ships of up to 100,000 cbm will be needed,” he said.
“We are working on designs of between 40,000 cbm and 100,000 cbm.”
Mitsui E&S said it has already come up with a design for an 82,000-cbm ship. The LNG carrier will feature type-C cargo tanks designed by TGE Marine Gas Engineering, a subsidiary that Mitsui E&S acquired in 2015.
“We are now involved in some gas-carrier ships that are being built in Japan,” Hayashi said. “We are working together with Sasaki Shipbuilding on a few 5,000-cbm LPG carriers.”
Mitsui E&S last built an LPG carrier two decades ago.
Restructuring capacity
The outfit is restructuring its shipbuilding capacity in Japan, slashing production at its main facility in Chiba and turning its focus from large commercial tankers to navy vessels and midsize bulkers.
Mitsui E&S’ shipbuilding activities will now focus mainly on the Yangzi-Mitsui yard, where it will supply vessel design and technical know-how. It also hopes to use China’s lower operating costs to increase its competitiveness.
“Shipowners like Japanese-built vessels, but at competitive prices,” Hayashi said. “This is what Yangzi-Mitsui can offer.
“We have chosen to partner Yangzijiang Shipbuilding because it is the largest privately-owned shipyard in China. It is already a strong and reputable shipyard. But with our partnership, it will be even stronger.”
