Shipping Giant NYK Line To Expand LNG Fleet By 50% Amid Rising Demand

Japan’s largest shipping company, NYK Line, is preparing for a major fleet expansion to meet growing demand for liquefied natural gas (LNG).

The company said it will expand its LNG tanker fleet by about 50% by early 2029, increasing the total number of vessels to more than 130 from the current 89. The figure includes both ships owned and operated by the Tokyo-based group.

Chief Executive Officer Takaya Soga said the decision follows rising customer inquiries, with many countries turning to LNG as a cleaner alternative to coal and a backup for renewable power.

Shell Plc, the world’s largest LNG trader, expects global consumption of the fuel to rise by around 60% by 2040. According to the International Group of LNG Importers (GIIGNL), there were 831 LNG carriers operating worldwide at the end of 2023. Shipbroker BRS has estimated that additional 241 vessels will be required by 2034 to keep pace with demand growth.

Most of Nippon Yusen’s LNG ships are built in South Korea, with some from China. Overall, about 8% of the company’s entire fleet, which also includes container ships and car carriers, comes from China.

This year, the origin of vessels has also become a sensitive issue. U.S. President Donald Trump introduced measures imposing fees on Chinese-owned, operated, or built ships docking at American ports, effective October 14. Despite the restrictions, industry experts point out that China’s massive shipbuilding capacity leaves few alternatives for buyers.

Japanese shipping giant Mitsui OSK Lines Ltd. is also preparing to expand its LNG fleet to secure a bigger share of the growing market.

Reference: Bloomberg

Source: Maritime Shipping News