News & Media

10 February, 2020

LNG Market News - Japan

(Source: Japan Maritime Daily 10/Feb/2020)

Mitsubishi Heavy Industries withdraws from the gas carrier

At a financial statement held on February 6th in Tokyo, Mitsubishi Heavy Industries President Seiji Izumisawa touched on the merchant ship business in the future and announced that it would effectively withdraw from building gas ships. Regarding the construction of gas ships, “Korea and China are challenging to catch up. We have to admit that we are inferior in cost competitiveness. “ The company will focus on the engineering business including high-density outfitting vessels such as ferries, RORO vessels, special vessels, and design.

In December last year, MHI announced that it would start discussions with Oshima Shipbuilding to sell Nagasaki Shipyard & Machinery Works Koyagi Plant (Nagasaki City), which builds large vessels such as LNG (liquefied natural gas) vessels. The aim is to reach an agreement with Oshima Shipbuilding by the end of March this year. President Izumisawa explained, “We are in the process of negotiations and will not speak.“
He said that he chose Oshima Shipbuilding as a candidate for sale, saying, “In addition to cooperating so far, we have a factory in the same Nagasaki Prefecture, and the distance is close and there is affinity.“

MHI announced last year that it will produce aero-engine parts at the Nagasaki Shipyard. President Izumisawa stated that Nagasaki Shipyard “will change the product mix and make effective use of the site because it has a site.“

The Koyagi Plant has the largest construction dock (1 million ton dock) in Japan, measuring 990 meters in length and 100 meters in width. In recent years, five LNG carriers have been built in a row in a row, but the LNG carriers delivered their final ships at the end of September this year. The plant currently has three new LPG (liquefied petroleum gas) vessels and one VLCC(Very Large Crude Carrier) commissioned by Imabari Shipbuilding.

After the VLCC will be delivered by the second quarter of 2021, there will be no on-hand work.
When the decision is made to sell the Koyagi Plant, the MHI Group’s new merchant ship business will be based on the Shimonoseki Shipyard & Machinery Works (Shimonoseki City, Yamaguchi Prefecture), and partly utilize the Nagasaki Shipyard & Machinery Works Main Plant (Nagasaki City), with ferries, RORO ships, etc. The construction of high-density outfitted vessels will be the main.

(Disclaimer) The English translations provided through this service are the result of translations made by The Japan Maritime Daily or automatically and mechanically translated by The Japan Maritime Daily using an automated translation system provided by a third party after certain processing of the Japanese content licensed by the third party. In terms of the English translation, The Japan Maritime Daily and MarineNet Co., Ltd. make no warranty or burden of any kind, express or implied, including its accuracy, reliability, validity or fitness for a particular purpose. MarineNet Users should fully understand that this service uses an automated translation system that automatically and mechanically recognizes and analyzes information and produces results. The users should understand the above conditions before using this service.


(Source: Japan Maritime Daily 10/Feb/2020)

Qatar Gas announces 40 yards for LNG carriers

Expected to April-May to prospect a job offer to the construction yard of new vessels 40 vessels plus alpha - LNG (liquefied natural gas) Qatar Gas that complete the large-scale negotiation. The policy of them is to make a dock reservation (slot reservation) of the informally offered shipyard around the delivery date of 2024-25. The contracts of the three major Korean shipbuilding companies are regarded as important, and attention is being paid to whether Japanese or Chinese shipyards can take orders.
Around June last year, LNG carrier yards in Japan, Korea and China submitted their first estimates to Qatar Gas. However, the Qatar side showed reluctance to the proposal and requested resubmission. This year, it is likely that each yard has successively submitted re-quotes.

The re-submitted quote will expire in April-May. Qatar gas to elect the shipyard to prospect the same period, to perform the slot reservation outlook.
Slot reservations are a prelude to the Order of Intent (LOI) and are less binding on the orderer. It could take a lot this year until a formal construction contract is signed. For this reason, it is considered that the shipyard wants to focus on completion time around 24-25 years in order to allow time for the delivery of new ships.
LNG carrier market officials commented on the negotiations, “40 ships will be almost decided by Korean shipbuilding. Whether or not the Chinese shipyard can receive orders for plus alpha. The Japanese name has not been raised. “ It seems that the Japanese shipbuilding industry is facing a tough battle, with the backlog of new LNG carriers falling to zero by the end of last year.

Qatar Gas’s new LNG carrier business negotiations use the so-called “matchmaking” method, in which shipping companies and shipyards are selected with different bids and then matched. After completing the slot reservation at the shipyard, it is expected that the negotiations with shipping companies will begin.
Qatar is currently working on a Northfield expansion project for a natural gas field. The company plans to increase LNG production capacity from 77 million tons a year to 110 million tons by 2024 and 126 million tons by 2027.

In addition, in Texas, the United States, Qatar Petroleum and ExxonMobil are planning to launch a large-scale project, Golden Pass LNG, with a production capacity of 16 million tons per year in 2024.

Adding replacements for existing vessels to the Northfield expansion and net increments for the Golden Pass, Qatar is expected to reach over 100 LNG carrier procurement over the next 10 years. This 40 ships plus alpha will be the first new construction.

(Disclaimer) The English translations provided through this service are the result of translations made by The Japan Maritime Daily or automatically and mechanically translated by The Japan Maritime Daily using an automated translation system provided by a third party after certain processing of the Japanese content licensed by the third party. In terms of the English translation, The Japan Maritime Daily and MarineNet Co., Ltd. make no warranty or burden of any kind, express or implied, including its accuracy, reliability, validity or fitness for a particular purpose. MarineNet Users should fully understand that this service uses an automated translation system that automatically and mechanically recognizes and analyzes information and produces results. The users should understand the above conditions before using this service.