Details of some significant shipbuilding contracts were confirmed this week in the gas carrier sector, including a US$1.7Bn order for six LNG carriers and another for a very large liquefied petroleum gas (LPG) carrier
Japan’s IINO Kaiun Kaisha Ltd (IINO Lines) has inked a deal to build an LPG carrier with South Korea’s Daewoo Shipbuilding & Marine Engineering (DSME). With a capacity of 91,000 m3, the new gas carrier would be delivered in March 2023. The contract contains an option for a second gas carrier, according to BRL Weekly Newbuilding Contracts.
What is significant about the newbuild is that it represents IINO Lines’ first with two-stroke, dual-fuel LPG propulsion, with the capability of burning LPG as a fuel and compliant fuel oil.
Employment for the newbuild has been secured on a long-term basis with Austria-based Borealis AG, according to BRL.
IINO Lines and its affiliated companies operate a fleet of 112 vessels consisting of oil and chemical tankers, LNG carriers, large and small gas carriers and dry bulk carriers.
This fleet covers 56 owned vessels and 56 others under long- and short-term charter according to IINO Lines’ Q1 2020 supplementary report.
Last year, DSME signed a contract with Bermuda-based Avance Gas Holding Ltd to construct two dual-fuel LPG carriers, each with a capacity of 91,000 m3, for delivery in 2021 and 2022.
Meanwhile, a second shipbuilding contract for LNG carriers was confirmed for the South Korean shipbuilder. BRL reported DSME has signed a US$1.7Bn order to build six LNG carriers, each with a capacity of 174,000 m3. DSME confirmed it had signed deals worth US$1.7Bn with European companies in a regulatory filing. Once delivered between July and December 2023, the vessels will be chartered by independent Russian gas company Novatek to carry shipments of Russian Arctic LNG.
BRL said brokers understood the two companies are Russia’s Sovcomflot and Japan’s Mitsui OSK Lines.
DSME has secured orders for 13 vessels worth US$3.3Bn this year – about 46% of its annual order target of US$7.21Bn.
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