Nissen Kaiun has added a VLGC to its growing stable of newbuildings.
The Ehime-based shipping company, which is Japan's largest private shipowner, has commissioned Hyundai Heavy Industries to construct a 85,000-cbm gas carrier for delivery at the end of next year.
Shipbuilding players said Nissen ordered the VLGC through Japanese trading house Mitsui & Co early this year, but the deal was never reported.
'Very close' relationship
One shipping source described the relationship between Nissen and Mitsui as “very close”.
“Although they have no capital relation, traditionally they are considered as same group. In other words, Nissen is the shipowning department of Mitsui & Co,” he said.
“Nissen normally orders ships through Mitsui and this deal should be done by Mitsui, but the actual owner of this HHI VLGC will be Nissen.”
The cost of the scrubber-fitted newbuilding has not been disclosed, but shipbuilding sources believe Nissen is paying at least $73m.
The company is said to have already secured employment. Japanese oil company JXTG Nippon Oil & Energy Corp, which is best known for its consumer-facing Eneos brand, is said to have chartered the newbuilding. Details of the deal have not been disclosed.
Officials at HHI could not be immediately reached for confirmation, while Nissen does not make public comments.
Nissen has been active in the shipbuilding market for the past few years.
Clarksons’ Shipping Intelligence Network says Nissen has 33 additional newbuildings. The orderbook is made up of two crude tankers, a pair of VLGCs, eight chemical and product carriers, three bulkers and 18 boxships at yards in Japan, China and South Korea.
The two 83,000-cbm gas carriers are under construction at Mitsubishi Heavy Industries and are due to roll out of the dry dock early next year.
The duo was originally ordered by BW LPG in 2016, but was sold to Nissen as part of a deal that included a charter back.
Diversified fleet
As for its trading vessels, Clarksons lists Nissen with a diversified fleet of 131 units, of which four are VLGCs.
Nissen also owns Global United — a joint venture LPG shipping company with India’s Synergy Maritime. The Chennai-based shipping company is listed with two VLGCs, five smaller LPG carriers and one suezmax tanker. The ships are mostly trading to India.
Nissen is also active on the resale market. The company sold the 106,000-dwt TH Symphony (built 2008) to Reederi Nord in February for $43m. The crude oil tanker has been renamed Nordsymphony and now trades in N2Tankers pool.
