Mitsui OSK Lines orders two LNG ferries at Mitsubishi

Ships will operate in Japan's coastal trades

Mitsui OSK Lines (MOL) has ordered Japan’s first LNG-fueled ferry newbuildings at Mitsubishi Heavy Industries.

The deal involves two 17,300-gt vessels with a capacity to carry 763 passengers.

The ships will be built at Mitsubishi’s Shimonoseki shipyard for delivery in 2022 and 2023. No price has been disclosed for the deal.

The ships will be operated by MOL subsidiary Ferry Sunflower Limited and operate between the mainland city of Osaka and Beppu on the island of Kyushu.

The ships will be powered by a dual-fuel engine which can operate on both LNG and heavy fuel oil.

MOL said the ships will cut sulphur oxide and nitrogen oxide emissions and reduce CO2 by 20%.

Mitsubishi said it hopes the deal will be the first of many. In a statement, the Japanese shipbuilder said: “Mitsubishi Shipbuilding will continue to construct passenger‐cargo ships and transport vessels to support the steady operation of customers and, by providing technologies to reduce the environmental load, will work together with its customers to solve their diverse challenges, vitalize maritime transportation, and contribute to environmental protection.”

The deal would seem to be an indication that Mitsubishi and MOL have repaired their commercial relationship. The two fell out over the sinking of the 8,000-teu containership MOL Comfort in 2011. The vessel was built by Mitsubishi and MOL claimed in a Tokyo Court that construction faults were to blame for the sinking.

The deal is also a further indication of Mitsubishi’s ambitions in the passengership market. Mitsubishi is in the process of selling its main merchant shipyard at Koyagi Nagasaki to Oshima Shipbuilding.

However, it is working on plans to convert its other Nagasaki based facility into a cruiseship repair yard.

It also wants to dedicate its Shimonoseki shipyard to the construction of environmentally- friendly passenger ships and roll on roll off vessels.

The company is likely to steer clear of the cruise ship market. It lost more than $2bn in building two cruiseships for Aida Cruises.

Other Japanese shipyards have also announced recently the construction of groundbreaking LNG-fueled commercial ships.

On Christmas Day, it became known that Oshima Shipbuilding and Namura Shipbuilding were awarded construction work for one 95,000-dwt bulk carrier each, on behalf of NYK Line and Mitsui OSK Lines respectively.

The ships are to service a long-term contract with energy giant Kyushu Electric Power Co (Kyuden).