K Line orders LNG carrier, inks charter deal with Diamond Gas

Japanese company K Line has placed an order for a liquefied natural gas (LNG) carrier and signed a charter deal for one LNG vessel with Diamond Gas, a subsidiary of Mitsubishi Corporation.

As informed, the Japanese shipping company concluded a shipbuilding contract with compatriot Samsung Heavy Industries. Furthermore, the charter deal was signed for 15-year with an option for up to 10 additional years.

Specifically, the newbuild vessel will feature 174,000 cbm. It will measure 290 meters in length, and have a beam of 45.8 meters.

The LNG carrier will be equipped with ME GA engine, which is a low-speed dual-fuel engine using low-pressure gas. The company expects that it will reduce the environmental impact through the reduction of fuel consumption during operation.

The LNG carrier is slated for delivery in the second half of 2026.

In its Medium Management Plan published last May, K Line has set LNG business as one of its top priority areas for future investment. The company plans to expand long-term contracts to respond to the growing demand for energy.

Last December, K Line laid out its short-term investment plans in a newly released report, earmarking $740 million for environmental initiatives.

The company has also recently completed the third biofuel trial on board its ships as part of its decarbonization efforts.