Japan’s NYK inks LNG charter deal with Kyushu Electric’s new trading unit

Japan’s shipping giant NYK has signed a deal to charter one newbuild LNG carrier to Kyushu Electric Power’s new trading unit, Q United Energy Supply & Trading.

Kyushu Electric Power or Kyuden formed the new trading unit in April this year as it looks to meet the growing demand for LNG as fuel.

NYK said in a statement it signed the new multi-year time charter contract with Quest “based on the relationship of trust and experience in energy transportation that NYK and Kyuden Group have built up to date.”

According to NYK, the firm ordered the 174,000-cbm LNG carrier at South Korea’s Samsung Heavy Industries.

The shipbuilder will deliver the 293 meters long vessel in 2024.

This vessel would feature a WinGD dual-fuel slow-speed diesel engine (X-DF) that has “superior” fuel-consumption efficiency and can operate on marine gas oil or boil off gas stored in the cargo tank, NYK said.

In addition, the carrier will also have a reliquefaction system that “can use surplus boil-off gas efficiently.”

NYK said it would not only cooperate with Kyuden Group in the LNG transportation business but also in the LNG fuel supply business for ships and the construction of the world’s first LNG-fueled large coal carrier.

Earlier this year, NYK and Kyushu Electric joined forces to order one 3,500-cbm LNG bunkering vessel from Mitsubishi Shipbuilding.

The goal is to launch LNG fuel supply business for ships in Japan’s Kyushu and Setouchi regions in the spring of 2024.

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