NKK to Build Fourth LNG Carrier With Membrane Tank System

Contract signing for a 22,500m3-type LNG carrier in Jakarta

NKK has signed a contract with Mitsui OSK Lines, Ltd. (MOL) and Nusantara Shipping, Ltd., a subsidiary of Nissho Iwai Corporation, for the construction of a 22,500m³ liquefied natural gas (LNG) carrier. The new order will be the fourth LNG carrier for NKK since it delivered its first in 1993.

The vessel will be built at NKK's Tsu Works and is scheduled for delivery in October 2000. Upon delivery, the vessel will be chartered by Pertamina, Indonesia's state-owned petroleum company, to transport Indonesian LNG from its gas terminal in Bontang to Japan for Hiroshima Gas Co., Ltd. in Hiroshima City and Nippon Gas Co., Ltd. in Kagoshima City, in southern Japan. The two medium-sized regional gas companies have contracted to import 200,000 tons of LNG annually for 15 years to supply clean natural gas for their districts. A joint venture between MOL and Jakarta-based PT Humpuss Intermoda Transportasi will be in charge of the ship's management.

NKK has so far won three orders for an 18,800m³ LNG carrier using a membrane-type cargo containment system. The first two, "Aman Bintulu" and "Aman Sendai," have already been delivered and are in service between Malaysia and Japan. The third is under construction with delivery scheduled for autumn 1998 for use on a Malaysian route. The latest order is the fourth membrane-type LNG carrier NKK will build for Japan's regional city gas utilities, further reinforcing NKK's unrivaled position in constructing this type of LNG carrier.

The order is also significant in that it will be the first membrane-type LNG carrier to be employed by Pertamina, which has thus far been time-chartering only independent-sphere Moss-type LNG carriers. It will also be the first time for MOL and Nissho Iwai to have selected the membrane-type LNG carrier for their LNG projects.

LNG carriers are required to have a highly reliable, ultralow-temperature cargo containment system to ensure the safe transport of natural gas in a liquefied state of -163°C(JC. The cargo containment system varies for each shipbuilder. As with its first three vessels, NKK's fourth LNG carrier will employ the GTT Mark III membrane cargo containment system with three cargo tanks covered by corrugated stainless steel membranes. NKK licensed the technology in the early 70s from Gas Transport & Technigaz (formerly S.N. Technigaz) of France and improved on it to create the latest membrane design.

GTT Mark III membrane-type LNG carriers have many advantages including 1) better safety ensured by a complete double-hull structure, 2) good visibility from the bridge because of its flat deck configuration, 3) excellent maneuverability due to its relatively small windage area, and 4) a space-efficient compact hull shape and a flexible choice of optimal tank sizes and shapes for better cost-competitiveness compared to other types of LNG carriers.

NKK believes that its membrane-type LNG carriers will fully meet future market needs for higher economic efficiency, safety and reliability. Building on its past construction achievements and reputation, NKK will seek further orders for both small and large ocean-going LNG carriers amid growing interest in securing cleaner sources of energy.