Japanese tonnage provider Nissen Kaiun has ordered a VLGC newbuilding at Kawasaki Heavy Industries (KHI).
Ehime-based Nissen is said to have contracted the 84,000-cbm gas carrier a few months ago, but the deal went unreported.
Long-term backing
Gas market sources said Nissen did not order the scrubber-fitted newbuilding speculatively, but booked it against a long-term charter with leading South Korean LPG importer E1. Details of the fixture and the cost of the newbuilding were not disclosed.
KHI is slated to deliver the ship during the second half of 2021.
Officials at the Japanese shipbuilder could not be immediately reached for comment. Nissen does not comment on market reports.
Japanese employment
The VLGC contract is Nissen's second this year. In May, it signed up one firm 85,000-cbm vessel plus one option at Hyundai Heavy Industries.
The scrubber-fitted newbuilding at HHI was reported to have cost Nissen at least $73m, and already has work lined up.
Japanese oil company JXTG Nippon Oil & Energy Corp, which encompasses the consumer-facing Eneos brand, has chartered the ship, but details have not been disclosed.
If confirmed, the deal marks the second contract this year for E1. In April, it was reported to have signed a charter of seven years plus options with Hyundai LNG Shipping for a 84,600-cbm VLGC under construction at HHI.
Sector debut
HHI is scheduled to deliver the scrubber-fitted newbuilding in the third quarter of 2020. The order marked Hyundai LNG’s entry into the VLGC segment.
Katsuyo Abe-led Nissen is the largest private shipowning company in Japan. It has close ties with Mitsui & Co. Most of its newbuildings are said to have been arranged through the trading house.
Nissen has a diversified fleet, with 139 trading vessels, of which four are VLGCs, according to Clarksons. It also has 38 vessels under construction at yards in China, South Korea and Japan.
In addition, Nissen owns LPG shipping company Global United — a joint venture with India’s Synergy Maritime.
Chennai-based Synergy is listed with two VLGCs, five smaller LPG carriers and one suezmax tanker. The ships mostly trade to India.
