Japanese shipowners Mitsui OSK Lines (MOL) and Nippon Yusen Kaisha (NYK) have come to an agreement with Chubu Electric Power Co. over the joint ownership of two LNG carriers.
Chubu Electric Power will gain a 40% interest in the Trans Pacific Shipping 2 Ltd (TPS2), a 50:50 joint venture between MOL and Mitsubishi Corp., with MOL and Mitsubishi selling a 30% and 10% share respectively. Chubu Electric Power will charter the TPS2 LNG carrier for a period of 20 years commencing in 2019.
Chubu Electric Power has also gained a 40% interest in Trans Pacific 1 Ltd (TPS1), owned by Mitsubishi Corp. (40%) and Nippon Yusen Kaisha (NYK) (20%). This carrier will be chartered from 2015 for a period of 15 years.
The two LNG carriers have a capacity of 153 000 m3 and will ship cargo from Australia to Japan. The shares will be transferred on delivery of the vessels from Mitsubishi Heavy Industries (MHI).
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A statement from NYK read: “The shared ownership by the three parties will contribute to the expansion of Chubu Electric Power’s shipping business and allow NYK to enhance its partnership and leverage each company’s know-how and expertise in the LNG value chain which contributes to the long-term, stable transport of LNG for Chubu Electric Power. The ship is assigned to transport LNG from Australia to Japan for about 15 years to be started in 2017, and NYK will be responsible for ship management.”
A statement from MOL read: “MOL takes advantage of the experience, know-how, and networks built up over the years as one of the world’s largest LNG carrier owners and operators to meet the LNG procurement needs of our customers, including Japanese power and gas companies.”
Edited from various sources by Ted Monroe