Matson’s LNG-powered containership enters service

Matson's containership Kaimana Hila is back in service after completing its conversion to be able to use liquefied natural gas (LNG) as fuel.

Kaimana Hila is Matson’s third vessel to operate on LNG, joining its sister ship, Daniel K. Inouye, and Manukai, Matson said in a statement.

The vessel now also has a new bow windshield for improved aerodynamics and fuel conservation.

According to its AIS data provided by VesselsValue, the 2019-built 3,600-teu containership left Cosco Shipping Shipyard (Nantong) in October.

Earlier this year, the US shipping firm awarded a retrofit contract to Cosco Shipping Shipyard (Nantong) for the containership to enable the vessel to use LNG as fuel.

The shipbuilder said the project included the installation of the LNG fuel gas supply system for the main engine and four auxiliary engines, the installation of three 1,350-cbm LNG fuel tanks, and other equipment.

Germany’s MAN said last year that Matson exercised an option from the original contract in June 2022 to convert the main engine aboard its Kaimana Hila.

The contract included converting one MAN B&W S90ME-C10.5 unit to a dual-fuel ME-GI unit capable of running on LNG.

Costs climb

Matson previously said it expects to invest about $35 million in the conversion of Kaimana Hila, the same as for Daniel K. Inouye.

However, Matson said in its second-quarter results report that Kaimana Hila LNG installation is estimated to cost about $47 million, $12 million more than previously expected.

Besides these two vessels, Matson replaced the main engine on its containership Manukai with a dual-fuel engine and previously said this will cost about $60 million.

However, the results report shows that the Manukai project was worth $72 million.

This means that Matson spent about $166 million on these three projects.

This is $36 million more compared to previous estimates.

In addition to these vessels, Matson ordered in 2022 three new 3,600-teu LNG-powered Aloha Class containerships at compatriot Philly Shipyard for about $1 billion.

Philly Shipyard recently started building the first of these three new LNG-powered containerships.

Matson will take delivery of these Jones Act compliant vessels in the fourth quarter of 2026 with subsequent deliveries in 2027.

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