Japan eyes resuming LNG carrier construction by 2030

According to informed sources, construction of the first LNG carrier since the hiatus is expected to begin at a currently idled dock. At the same time, a public-private system will be developed to enable the stable domestic construction of three to five LNG carriers per year at new state-of-the-art docks from 2038.

The government plans to support shipbuilders' investments in related equipment, as well as their research and development efforts, while providing financial aid for purchases by shipping companies and consignors of domestically built LNG carriers, which are relatively expensive.

The government will continue these support measures by 2038 to help both shipbuilders and their clients become profitable, given that Japanese companies had withdrawn from LNG carrier construction as a result of price competition with Chinese and South Korean rivals.

In Japan, public-private discussions on LNG carrier construction have been underway to secure means of transporting LNG, which is used for electricity generation and city gas.

Three major Japanese shipbuilders--Imabari Shipbuilding Co., Kawasaki Heavy Industries Ltd. and Namura Shipbuilding Co.--have indicated their intention to establish an independent domestic shipbuilding system.

Potential sites for LNG carrier construction include Kawasaki Heavy Industries' Sakaide Works in Kagawa Prefecture, western Japan, and a site near Namura Shipbuilding's Imari Shipyard in Saga Prefecture, southwestern Japan.

Additionally, public and private investments totaling about 320 billion yen are planned for domestic LNG carrier repair facilities. Japan has relied on those facilities overseas.

Strengthening the functions of docks and deploying artificial intelligence are also being considered to improve domestic repair capacity by 2035.