Japanese shipping company K Line has struck a deal to charter a dual-fuel VLGC newbuilding to LPG trading company Gyxis Corp for an undisclosed period.
The 86,700-cbm capacity vessel, which can run on LPG or conventional fuel oil, has been ordered at Kawasaki Heavy Industries for delivery in 2023.
K Line and Gyxis did not disclose the length of the charter or the price of the newbuilding.
Broker Clarksons estimates the average price of an 82,000-cbm VLGC is $78m.
K Line said the newbuilding would also be capable of also transporting ammonia.
The Tokyo-listed shipping giant said the newbuilding would reduce greenhouse gas emissions by complying with the standards of the recently agreed Phase 3 of the Energy Efficiency Design Index. The efficiency standards of the International Maritime Organization regulation enters into force for VLGCs ordered after 2022.
K Line said the investment fits with its environmental plan called K Line Environment Vision 2050.
Tokyo-headquartered Gyxis was formed in 2015. It is involved in the manufacture, storage, transportation and import and export of LPG. It controls six LPG import terminals in Japan.
In July this year, it opened a subsidiary office in Houston, Texas, to grow its business exporting LPG from North America.
Its main shareholders are Cosmo Energy Holdings, Idemitsu Kosan and Sumitomo Corp.
“By adding this ship to our fleet, we are not only working towards strengthening the stable procurement of LPG, but also reducing the environmental impact of sea transportation and the realisation of sustainable social growth,” Gyxis said.
