MHI and Imabari Shipbuilding Establish MI LNG Company

Press Release
Monday, March 25, 2013
"Sayaendo" a new-generation LNG carrier

Move taken to accommodate large-scale projects as way of winning place in the international market.



Effective April 1, Mitsubishi Heavy Industries, Ltd. (MHI) and Imabari Shipbuilding Co., Ltd. of Imabari, Ehime Prefecture, will jointly establish MI LNG Company, Limited, a company to handle the design and marketing of LNG carriers. Through establishment of the JV, the two companies aim to proactively prepare a structure capable of responding to large-scale LNG carrier construction projects, which are expected to increase in tandem with expanding global demand for LNG. By combining MHI's technology development capabilities and Imabari Shipbuilding's cost competitiveness, supported further by the effective management of their respective shipyards, the two companies look to earn a place in the international LNG carrier market.


The JV, which will have its head office in Minato-ku, Tokyo, will be capitalized at 50 million yen. MHI will own 51% of equity and Imabari Shipbuilding will hold the remaining 49%. Upon receiving an order for an LNG carrier, the JV will prepare the specifications, etc., and then order ship construction either to MHI's Nagasaki Shipyard & Machinery Works or to Imabari Shipbuilding.



With shipyards of two companies at its disposal, the JV will be able to secure collective shipbuilding capacity of more than eight LNG carriers per year. This will enable the JV to take orders for multiple LNG carriers, putting it in a position to vie against Korean and other large shipbuilders. Regarding LNG carrier types, besides the conventional Moss type with spherical LNG tanks and the membrane type, the JV can also offer the "Sayaendo," a new-generation LNG carrier* developed by MHI as a high value-added vessel evolved from Moss-type carriers but achieving enhancements in energy savings and operability.



MHI is a pioneer in Japan's LNG carrier industry, having engaged in their development and construction since the 1970's. To date the company has delivered 42 ships. Imabari Shipbuilding, Japan's largest shipbuilder in terms of both tonnage and sales revenue, is one of major shipbuilding dedicated companies in Japan that include LNG carriers in its portfolio.
 


In May 2012, MHI agreed with Imabari Shipbuilding to collaborate in container carrier technology, and in July to license manufacture and marketing rights of deck machinery. In October, the two companies jointly received an order for two highly energy-efficient, next-generation pure car and truck carriers from Nippon Yusen Kabushiki Kaisha (NYK Line). This relationship between MHI and Imabari Shipbuilding resulted in the latest collaboration agreement.



Owing to the suspended operation of nuclear power plants in Japan in the wake of the Great East Japan Earthquake, demand for LNG as a fuel for power generation has been expanding not only in Japan but globally. In addition, as a direct outgrowth of the "shale gas revolution" in the U.S., the share of North American LNG in the global market is expected to increase, resulting in a trend toward longer transport distances. With volume growing and transport distances lengthening, the number of LNG carriers required is expected to increase. As a result, in order for industry players to attract orders, their shipyards must be structurally prepared to accommodate construction of multiple carriers within in a short period.



Going forward, MHI and Imabari Shipbuilding will explore demand for LNG carriers widely as they look to gain an edge in this increasingly competitive market.
 

Maritime Reporter March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

WireCo Acquires Netherlands’ Endenburg

Company will open new crane distribution center WireCo WorldGroup Inc., the world’s leading producer and marketer of specialty steel ropes and high synthetic ropes,

Keppel Q1 Profits Dip Slightly

The Keppel Corporation released its limited unaudited results for the first quarter ending March31, 2014, reporting a 5% decrease in net profits to S$339 million compared to Q1 2013's S$357 million,

Hapag-Lloyd, CSAV Merger Finalized

Hapag-Lloyd and CSAV binding agreement signed / In return for contributing its container business, CSAV becomes new core shareholder of Hapag-Lloyd / Hapag-Lloyd

Energy

Crashes in Crucial US Crude Waterway Hit 10-year Low

Serious crashes in the bustling Bay of Galveston have fallen to the lowest level in a decade even as more oil moves on U.S. waterways, official data show, suggesting

Keppel Q1 Profits Dip Slightly

The Keppel Corporation released its limited unaudited results for the first quarter ending March31, 2014, reporting a 5% decrease in net profits to S$339 million compared to Q1 2013's S$357 million,

US: $4B in Loan Aid for Renewable Energy

The U.S. Energy Department on Wednesday unveiled a plan for up to $4 billion in loan aid for renewable energy companies to help rejuvenate a program that faced

LNG

Petrobras, Mitsui Study South Brazil LNG Import Terminal

Brazil's state-run oil company Petroleo Brasileiro SA and Japanese trading house Mitsui Corp will study building a liquefied natural gas (LNG) terminal in the country's southernmost state,

Ukraine launches restricted operation

Ukrainian forces launched a "special operation" on Tuesday against separatist militia in the Russian-speaking East, authorities said, although aside from a landing

OSC Plans Fleet Expansion through 2018

State-owned Oman Shipping Company SAOC (OSC) is projecting to expand its current fleet of 43 ships to 50 by 2018, the Oman Daily Observer reported. According to the report,

News

Crashes in Crucial US Crude Waterway Hit 10-year Low

Serious crashes in the bustling Bay of Galveston have fallen to the lowest level in a decade even as more oil moves on U.S. waterways, official data show, suggesting

WireCo Acquires Netherlands’ Endenburg

Company will open new crane distribution center WireCo WorldGroup Inc., the world’s leading producer and marketer of specialty steel ropes and high synthetic ropes,

Keppel Q1 Profits Dip Slightly

The Keppel Corporation released its limited unaudited results for the first quarter ending March31, 2014, reporting a 5% decrease in net profits to S$339 million compared to Q1 2013's S$357 million,

 
 
Maritime Contracts Naval Architecture Navigation Offshore Oil Pipelines Port Authority Salvage Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1960 sec (5 req/sec)