NYK plans huge investment in LNG

Nippon Yusen Kaisha (NYK) announced that it plans to invest approximately US$ 5.13 billion in LNG carriers and the offshore business over the next five years. The company also intends to reinforce an asset-light strategy for containerships and dry-bulk carriers.

In its mid-term management plan, NYK explained it would be focusing on LNG and offshore, using these business areas to “achieve differentiation through technological capabilities.”

Large-scale investment

The shipowner commented: “NYK realizes strong business portfolio against changing market conditions by utilizing business chances such as LNG transportation and offshore business, and strengthens financial ground which enables large-scale investment, and sets out NYK group’s sustainable growth.”

Considering the LNG sector, NYK noted the growing demand for LNG from Japan and other developing countries, as well as the important removal of the shale gas export ban in North America. Reference was also made to the current shortage of highly skilled seafarers for LNG carriers.

LNG transport sector

The company outlined its plans for its LNG transport sector:

• Expand fleet size to 100 vessels
• Train and develop highly skilled seafarers at a maritime academy in the Philippines and other institutes
• Provide better quality navigation, ship management and construction supervision capabilities
• Develop a new business related to LNG fuel
• Pursue LNG exploration and production opportunities
• Strive to be more involved in all stages of the LNG value chain and seek synergies with the LNG transport business

Offshore business

Looking at the offshore business, NYK explained that the offshore business development was accelerating, largely due the continued high price of oil and LNG. The company also noted a greater need for FSRU (floating storage and regasificaiton units) and FLNG (floating liquefied natural gas) projects, adding that it would expand long-term stable revenues through FPSO, FSRU and FLNG facilities.

Edited from various sources by Katie Woodward

Read the article online at: https://www.lngindustry.com/lng-shipping/01042014/nyk_lng_investment_371/