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K Line Orders LNGC with Hudong-Zhonghua

The signing ceremony was held in Kuala Lumpur, Malaysia. Photo: K Line

Laxman Pai

Japanese shipping company Kawasaki Kisen Kaisha (K Line) has ordered two liquefied natural gas (LNG) carriers with with Hudong-Zhonghua Shipbuilding backed by long-term contracts with Malaysia's energy giant Petronas.

The 12-year contract to charter them to Petronas starts in 2022, with an option for an extension for a further 12 years.

The two vessels will be built by Hudong-Zhonghua Shipbuilding , a wholly owned subsidiary of China State Shipbuilding Corporation, the largest shipbuilding group in China, for delivery in the second quarter of 2022, K Line said.

These two vessels will be equipped with X-DF engine, which is dual-fuel engine which uses gas admitted at low pressure.

Since the delivery of S.S. Bishu Maru in 1983, the first LNG carrier owned by any Japanese shipping company, K Line has been establishing safety/expertise on LNG transportation and developing its worldwide network over the past 37 years.

K Line will further expand stable earning structure from long-term contract and contribute to stable supply of energy.

Petronas, a fully integrated oil and gas company and also a global LNG producer with over 35 years of experience, provides an uninterrupted supply of LNG to more than 25 countries around the world.

Petronas is also the first global energy player to introduce the floating LNG concept in 2016. These two newbuilding vessels will engage in transportation of LNG from Malaysia (Bintulu) to Shenergy (Group) Co., Ltd., China, from 2022.

Feb 10, 2020

 

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