K Line signs 12-year contract with Petronas LNG

K Line signs 12-year contract with Petronas LNG

K Line, the Japanese shipping company, has ordered two new LNG carriers and signed a 12 year-charter to charter them to Malaysia-based Petronas LNG.

China’s Hudong Zhonghua Shipbuilding (group) Co., Ltd. will build the two vessels, which are scheduled for delivery in the second quarter of 2022, according to a statement from K Line. 

Each vessel will have a capacity of 79,900m³ and a draught of less than 9m, allowing passage through shallower inland waterways, Hudong-Zhonghua said. The vessels will also be able to pass through deeper bodies of water in southeast Asia, probably to transport LNG from Petronas’ Sarawak-based 30mn t/yr Bintulu and floating 1.2mn t/yr PFLNG 1 liquefaction facilities.

The shipyard publicised the order last month but didn’t mention which shipowner had contracted it to build the two carriers. 

It’s possible Petronas signed the charter as part of an agreement announced in January with China’s state-controlled Shenergy for 1.5mn t/yr of LNG for delivery to the small-scale Wuhaogou import terminal in Shanghai, which included collaboration on building and chartering new mid-size LNG carriers.

K Line said once this charter expires, Petronas will have the option to renew it for 12 years.

For more information visit www.klineoffshore.no

11th February 2020