Japanese shipowner NYK is beefing up on LNG carriers to meet what it sees as an expansion of the trade and increased demand for vessels.
Speaking at investment fund Anchor Ship Partners’ conference in Tokyo, The Japan Maritime Daily reported NYK executive officer and LNG group head Yasuyuki Inami as saying the company plans to boost its LNG carrier fleet to more than 120 vessels by 2027 from the 85 it counts in its fleet as of the end of September.
Inami said NYK already has more than 35 LNG carrier newbuildings. He said these comprise 29 firm orders backed by long-term contracts with companies such as QatarEnergy, Kyushu Power Co, China National Offshore Oil Corp, EDF and EnBW of Germany, with the rest having been informally or “pre-ordered”.
The NYK executive said the company is seeing a strong demand for vessels from power and gas companies.
He indicated the LNG business would help NYK build a long-term stable revenue base.
Of the 85 vessels currently owned, Inami said NYK managed 59 of them. But the company has also decided to take 20 of the 29 firm newbuildings under its management.
To facilitate this, Inami said NYK will be expanding its ship management bases in Japan and the UK alongside those outfits managing vessels with other joint-venture partners, but also setting up a new company in Hong Kong.
NYK, which has been getting involved in other aspects of the LNG supply chain, is treating its LNG carrier activities as one of its core businesses.
The company believes shipping capacity in this sector is set to increase with the expansion of cargo moves and said long-term contracts are expected to provide a stable source of income.
NYK considers LNG carriers to be one of its core businesses and positions them as a priority investment field. This is because demand for shipping capacity is expected to increase with the expansion of maritime cargo movements, and long-term contracts are expected to become a stable source of income.
