Japan moves to resurrect LNG carrier construction
Japan, a former powerhouse in LNG shipbuilding, is gearing up to revive its domestic construction of LNG carriers after a significant hiatus of seven years. The Ministry of Land, Infrastructure, Transport, and Tourism recently brought together key stakeholders in the industry to kickstart discussions on the revival of this sector.
Collaboration and Planning for the Future
The meeting, attended by major players such as Imabari Shipbuilding, Kawasaki Heavy Industries, Namura Shipbuilding, the Shipbuilders’ Association of Japan, the Japanese Shipowners’ Association, and LNG giant JERA, aimed to outline proposed order volumes, construction schedules, yard investments, and costs. Government representatives from various ministries were also present at the gathering.
Challenges and Roadmap for Revival
While Japan has set an ambitious target of being able to construct three to five LNG carriers annually by 2035, restarting production poses several challenges. A government roadmap highlighted the lack of recent experience in building the membrane-type containment systems prevalent in the current LNG carrier market, along with the absence of necessary production infrastructure.
The three yards are exploring potential collaborations to rebuild this capability, possibly leveraging technology and components from South Korea. Furthermore, the meeting emphasized the importance of ensuring that Japanese-built ships are internationally competitive to garner interest from cargo interests and domestic owners.
Looking Towards a Promising Future
With approximately 200 LNG carriers under the control of Japanese shipping companies and energy groups as of last year, the government is now focused on working closely with industry stakeholders to determine the expected number of vessels, construction timelines, investment requirements, and necessary support to make Japanese LNG carrier construction economically sustainable once again.
As Japan takes strides towards revitalizing its LNG carrier construction industry, the collaborative efforts of shipyards, owners, and government entities signal a promising future for the country’s presence in this crucial sector.
