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    Japan's K Line pens 15-year charter contract for LNGC

Summary

The carrier will be delivered to Mitsubishi Corporation subsidiary Diamond Gas International. [Image: K Line]

by: Shardul Sharma

Posted in:

Natural Gas & LNG News, Asia/Oceania, Liquefied Natural Gas (LNG), Security of Supply

Japan's K Line pens 15-year charter contract for LNGC

Japanese shipping company K Line has signed a 15-year time charter contract with Mitsubishi Corporation subsidiary Diamond Gas International for an LNG carrier (LNGC), it said on May 15. The contract can be extended up to 10 additional years.

The 174,000 m3 LNGC will be built by the Korean shipyard Samsung Heavy Industries. This is the first long-term time charter contract between Diamond Gas and K Line involving a newly built vessel. The new vessel will be engaged in LNG transportation around and will be delivered in the second half of 2026.

This vessel will be equipped with a ME-GA engine, a low-speed dual-fuel engine that uses low-pressure gas. This engine is more environmentally friendly than traditional LNG engines and will help K Line to reduce its emissions.

In its medium-term management plan published in May 2022, K Line has positioned the LNG business as one of its top priority areas for future investment. The company plans to expand its LNG fleet and develop new LNG-related businesses.