Kansai Electric secures new carrier

22 June 2016, Week 24 Issue 530

Kansai Electric Power, Japan’s second largest electric utility by sales, has secured its second LNG carrier as part of its efforts to procure the fuel more flexibly and at lower transportation costs. Kansai Electric, based in Osaka City, took delivery of the LNG Fukurokuju from shipbuilder Kawasaki Heavy Industries on June 17.

The LNG Fukurokuju, which has a tank capacity of 165,134 cubic metres, was built at Kawasaki’s Sakaide plant in Kagawa Prefecture.

The tanker will be used primarily to transport LNG from the Australia Pacific LNG (APLNG) project and the Ichthys LNG project, both in Australia, Kansai Electric said.

The Japanese utility owns the LNG Fukurokuju through its 70:30 joint venture with major Japanese shipping firm Mitsui OSK Lines (MOL).

Kansai Electric also owns the LNG Ebisu through another joint venture with MOL and Iino Kaiun Kaisha, another Japanese shipping firm. Kansai Electric Power, MOL and Iino Kaiun Kaisha have 70%, 15% and 15% shares in the venture respectively.

The LNG Ebisu, which has a tank capacity of 147,546 cubic metres, was also built by Kawasaki Heavy Industries. It was completed in September 2008.

Kansai Electric and MOL have set up another joint venture to build and own an LNG carrier, with a similar equity split as the LNG Fukurokuju venture. The third LNG carrier, which will have tank capacity of 155,300 cubic metres, is being built by Japan’s Mitsubishi Heavy Industries (MHI).

It will also be used primarily to transport LNG from the APLNG project and the Ichthys LNG project, Kansai Electric has said.

Edited by

Andrew Kemp

Editor

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