Kumiai Navigation’s has secured employment for a VLGC newbuilding in a $54m deal that will see Japan's Astomos Energy charter what is believed to be its first LPG-fuelled vessel.
The Singapore-based shipping company has fixed out the 84,000-cbm newbuilding, which is under construction at Kawasaki Heavy Industries (KHI), to Astomos for five years.
The charterer is to pay close to $900,000 per month.
The newbuilding, listed as Hull No 1748, is slated to be delivered in August 2021.
Kumiai was not available for comment on the reports.
“Kumiai certainly would like to get a higher charter rate for the VLGC newbuilding but the sector is cooling down,” one gas expert said.
Industry sources believe Kumiai is paying $80m or less for the LPG-propelled dual-fuelled ship. They believe the potential earnings from the Astomos charter contract will cover the newbuilding’s costs.
Kumiai ordered the dual-fuel gas carrier early last year and the VLGC is part of its fleet renewal and expansion programme. It said it has opted for a dual-fuel vessel because the trend favouring environmental-friendly emissions choices is accelerating in the shipping world.
The newbuilding will join a fleet of 24 VLGCs operated by Astomos, a Japanese LPG importer and trader.
Kumiai is also the only shipping company to have signed up for dual-fuel VLGC at KHI.
Besides the dual-fuel gas carrier newbuilding at KHI, Kumiai is also due to take delivery of one scrubber-fitted, 82,200-cbm VLGC from the Japanese yard. The gas carrier, which is being built to the older Tier II emissions standards, is to be named Crystal Angel and is said to have been chartered to Japan’s Gyxis Corp. Details of the charter period and rate have not been not disclosed.
Besides the VLGC newbuildings, Kumiai also has a 5,000-cbm pressurised LPG carrier under construction at Sasaki Shipbuilding, and one ultramax and one newcastlemax bulker on order at shipyards in China. It is due to take delivery of the trio this year.
Kumiai currently has a fleet of 15 vessels on the water, including four VLGCs built between 2003 and 2019, as well as the 5,000-cbm LPG carrier Crystal Lavender. The remainder are bulkers.
The company is controlled by Kumiai Senpaku, which boasts a fleet of 17 ships.
