NYK signs long-term charter with CNOOC for six new LNG Carrier

May 2, 2022

On April 28 through its subsidiary, NYK concluded a long-term time-charter contract with CNOOC Gas and Power Singapore Trading & Marketing Pte. Ltd.* for six liquefied natural gas (LNG) carriers, in addition to a shipbuilding contract for the vessels with Hudong-Zhonghua Shipbuilding (Group) Co. Ltd.

This is NYK’s first long-term time-charter contract for an LNG carrier with the CNOOC. The six vessels are scheduled to be delivered between 2026 and 2027 and will be mainly engaged in LNG transportation to China.

NYK has also signed a project head of agreement with a subsidiary of China Merchants Energy Shipping Co. Ltd (CMES), a Chinese shipping company, to jointly own and manage the vessels. Under the partnership with CMES, NYK will provide stable and safe LNG transportation to the CNOOC.

The LNG carriers will be equipped with an X-DF2.1 iCER,** a next-generation dual-fuel engine that can operate on fuel oil or boil off gas stored in its cargo tank. The vessels will each have a cargo tank capacity of about 174,000 cubic meters and a membrane-type tank that will make use of advanced insulating materials*** to reduce the boil-off rate (percentage of gas volume that vaporizes during navigation).

Signing ceremony

From left）
NYK LNG Group General Manager, Yasuyuki Inami
NYK Senior Managing Executive Officer, Akira Kono
NYK President, Hitoshi Nagasawa
NYK Executive Officer, Hironobu Watanabe

<Vessel Particulars>
Length overall: about 299.00 meters
Moulded Breadth: 46.40 meters
Main engine: X-DF2.1 iCER
Cargo tank capacity: about 174,000 cubic meters
Shipbuilder: Hudong-Zhonghua Shipbuilding (Group) Co., Ltd.
Delivery year: 2026–2027

On February 3, 2021, NYK released the “NYK Group ESG Story,” which aims to further integrate ESG into the company’s management strategy and promotes activities that contribute to the achievement of the SDGs through business activities. On March 24, 2022, NYK released the updated “NYK Group ESG Story 2022,” which introduces initiatives for integrating ESG into the Group’s management strategies set forth in the “NYK Group ESG Story” and provides a partial explanation of the Group’s sustainable growth strategy from a long-term perspective.

To strongly promote ESG management, the NYK Group will encourage new value creation as a sustainable solution provider through a business strategy that includes the transportation of LNG, which is expected to be a low-carbon bridging fuel prior to the transition to future zero-emission fuels.