K Line seals LNG carrier charter deal with Mitsubishi’s Diamond Gas

Japan’s shipping giant K Line has signed a long-term deal to charter a newbuild LNG carrier to Mitsubishi Corporation’s unit Diamond Gas International.

K Line said in a statement on Monday that the 15-year long charter contract has an option for up to 10 additional years.

According to K Line, it has also concluded a shipbuilding contract with South Korea’s Samsung Heavy Industries on May 12 for a 174,000-cbm LNG carrier.

The firm will take delivery of the 290 meters long ME-GA LNG carrier in the second half of 2026.

This is the first long-term time charter contract between Diamond Gas and K Line involving a newly built vessel.

LNG Prime reported in April, citing shipbuilding sources, that K Line has ordered two LNG carriers at Samsung Heavy. These two vessels are scheduled for delivery by November 2026.

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.

According to its website, K line is operating a fleet of 44 LNG carriers but the shipping firm also aims to have about 40 LNG-powered vessels in its fleet by 2030 as part of the company’s plans to slash emissions.

The firm said in the statement it will continue to expand its long-term contracts and accommodate the growing demand for energy by responding to the diverse needs of its customers.

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