Mitsubishi, Imabari Form JV for LNG Carriers

Mitsubishi Heavy Industries (MHI) and Imabari Shipbuilding have agreed to form a joint venture handle the design and marketing of LNG carriers. The JV will come into effect from April 1, 2013.

“Through establishment of the JV, the two companies aim to proactively prepare a structure capable of responding to large-scale LNG carrier construction projects, which are expected to increase in tandem with expanding global demand for LNG,” Mitsubishi said in a statement.

MHI will own 51% of equity in the JV and Imabari Shipbuilding will hold the remaining 49%.

Regarding LNG carrier types, besides the conventional Moss type with spherical LNG tanks and the membrane type, the JV can also offer the "Sayaendo," a new-generation LNG carrier developed by MHI as a high value-added vessel.

Demand for LNG as a fuel for power generation has been expanding in Japan as a result of suspended operation of nuclear power plants in Japan in the wake the tsunami, the company said. It added that, demand for LNG carriers is also expected to increase due to rising share of North American LNG in global market, a direct result of shale gas revolution in the US.