NYK bolsters LPG carrier business with new subsidiary up and running

NYK Energy Ocean (NEO), a newly established subsidiary of Japanese shipping company NYK focused on operating LPG carriers, chemical and product tankers, and cargo ships, has officially commenced operations.

NYK set up the new subsidiary by acquiring 80% shares for approximately 76 billion yen (around $509.3 million) and taking over all of ENEOS Ocean’s shipping business, except the crude-oil tanker business.

NEO’s operations officially started on April 1 with 47 vessels, including 18 LPG carriers, 18 chemical and product tankers, and 11 cargo ships taken over from ENEOS Ocean.

The new subsidiary aligns with NYK Group’s ambition to strengthen its LNG/PG carrier business and fulfill its responsibility for stable energy transportation.

The acquisition will also include transfering more than 100 employees from ENEOS Ocean.

Koichi Chikaraishi, President of NEO, commented: “Today, NYK Energy Ocean Corporation has been established. ENEOS Ocean provides high-quality marine transport services to companies in Japan and overseas.

“NYK Energy Ocean, which has taken over this business, will continue to accurately grasp customers’ needs and aim to achieve reliable and efficient marine transport based on the philosophy that safety comes first. Furthermore, by becoming a member of the NYK Group, we will leverage the benefits of scale to improve quality control and cost competitiveness.”