Japan's Iino Kaiun Kaisha has confirmed an order of a new LPG-fuelled VLGC for charter to Equinor.
It said the 84,000-cbm vessel is its first to use the gas as a fuel in a two-stroke engine together with diesel.
The ship has been ordered at the Sakaide works of Kawasaki Heavy Industries (KHI), as reported earlier this month by TradeWinds.
Iino confirmed a time charter with Norwegian oil major Equinor on delivery in the fourth quarter of 2021, without revealing terms.
"Based on medium- to long-term time charter contracts with major cargo owners in Japan and overseas, Iino Lines has engaged in LPG shipping for many years," the company said.
"By deploying this new and improved environmentally friendly vessel under a new time charter contract, Iino Lines is strengthening its relationship with Equinor."
Methanol tanker in operation
Iino added it is actively working on initiatives towards the realisation of vessels that use next-generation fuels.
Construction of the 50,000-dwt Creole Sun, the company's first tanker equipped with a two-stroke dual-fuel methanol-powered engine, was completed in December 2019.
LPG used for bunkers can greatly reduce emissions of carbon dioxide (CO2), sulphur oxide (SOx) and nitrogen oxide (NOx), compared to the usual heavy fuel oil, it said.
The deal for the new VLGC reportedly includes one option, but the price has not been disclosed.
One gas player told TradeWinds Equinor had put out a tender to charter two LPG-fuelled VLGC newbuildings. He added that KHI is one of the shipyards the outfit favours.
There is speculation that Equinor may have chartered another LPG-fuelled VLGC newbuilding, also being built at KHI.
Singapore’s Kumiai Navigation ordered the vessel this year, for delivery in the first quarter of 2022.
“We think Iino will not exercise the optional ship at KHI without any employment attached,” the gas player said.
Iino is familiar with Equinor. The companies co-owned a pair of LNG vessels with K Line — the 143,000-cbm Arctic Discoverer and Arctic Voyager (both built 2006).
