K Line orders three LNG carriers

A group company consisting of Kawasaki Kisen Kaisha, Ltd. (“K”Line), together with its Indonesian consortium partner, PT. Pelayaran Nusantara Meratus (PNM), has executed three 20-year long-term charter agreements for three new LNG carriers for Tangguh LNG Project with the Tangguh Production Sharing Contractors operated by BP Indonesia.

The Tangguh LNG project has purchase and sales agreements to four customers: about 3.7 million tons to Sempra?s terminal near Ensenada in Baja California, Mexico, 2.6 million tons to the Fujian LNG terminal in China, about 0.8 million tons to K Power of Korea and 0.55 million tons to POSCO in Korea.

The Project had been in a bidding process to procure seven LNG carriers, one to Korea and six to Mexico, out of which “K”Line consortium has successfully been awarded three vessels.

In addition to the already executed ship building contracts for two vessels with Samsung Heavy Industries, “K”Line had executed an additional shipbuilding contract with the same shipyard for the third vessel with identical specifications to the two already ordered. These 153,200 m3 membrane newbuildings will be powered by dual fuel diesel electric engines and have a service speed of 19.5 knots. The first vessel is scheduled for delivery in August 2008 and the last unit in April 2009.