Low-profile Japanese shipowner Nissen Kaiun has returned to South Korea's Hyundai Heavy Industries for a trio of VLGC newbuildings.
Nissen’s latest order brings the tally of 84,000-cbm vessels it has under construction at HHI to four, while two other VLGCs being built in Japan take its total newbuilding haul for vessels of this size to six.
A gas player said Nissen signed up for the latest trio late last year but the order went unreported.
“Nissen has opted for conventional VLGC newbuildings but will be installing them with scrubbers,” the gas player said. “One of the newbuildings is able to transit the old and new locks of the Panama Canal.”
HHI declined to comment on the deal, citing contract confidentiality, while Nissen does not comment on market reports.
The price of the three VLGCs has not been disclosed, but shipbuilding players suggested it is more than $77m per ship.
“The VLGC market has been strong and [the] shipbuilding price has increased,” a shipbuilding player said.
“We do not know if Nissen has lined up employment contracts for its latest three VLGCs at HHI or [if it] has ordered them on speculation,” the gas player said.
Nissen is due to take delivery of the trio in 2022.
Last summer, Nissen commissioned HHI to construct a single 84,000-cbm, scrubber-fitted VLGC for delivery at the end of 2020 for a reported price of at least $73m.
It ordered the vessel against a charter contract from Japanese oil company JXTG Nippon Oil & Energy Corp, which is best known for its consumer-facing Eneos brand.
Details of the charter have not been disclosed.
Charter-back deal
In addition, Nissen has two newbuildings under construction in Japan.
It is soon due to take delivery of one 83,000-cbm gas carrier — to be named the BW Yushi — from Mitsubishi Heavy Industries.
The ship was originally ordered by BW LPG in 2016, but it was sold to Nissen as part of a deal that included a charter back.
Nissen is also scheduled to take delivery of one 84,000-cbm newbuilding from Kawasaki Heavy Industries during the second half of 2021.
It ordered the scrubber-fitted newbuilding against a long-term charter with leading South Korean LPG importer E1.
Nissen is believed to be the largest private shipowning company in Japan.
The Katsuyo Abe-led outfit has close ties with Mitsui & Co, and most of its newbuildings are said to have been arranged through the trading house.
Nissen has a diversified fleet, with 128 trading vessels, of which four are VLGCs, according to Clarksons. It also has 30 vessels under construction at yards in China, South Korea and Japan.
In addition, Nissen owns LPG shipping company Global United Shipping — a joint venture with India’s Synergy Maritime.
According to VesselsValue, Global United Shipping sold four gas carriers last year — two VLGCs, a midsize LPG ship and a semi-refrigerated gas carrier.
The VLGCs were the 75,300-cbm Palanimala Gas (built 1992) and 75,300-cbm Takao Gas (built 1993).
Oriental Energy is listed as having acquired the Palanimala Gas for $11.8m and renamed it Tower Rise. The buyer of the Takao Gas is not known.
