K Line amends co-owned LNG carriers target

Japan’s Kawasaki Kisen Kaisha said that, due to the current market conditions, it has revised its target for co-owned LNG carriers by the end of the fiscal year 2019 from 61 to 57.

Against the backdrop of the slowdown of the global economy and the prolonged slump in crude oil prices, the start of newly-planned LNG projects is beginning to be delayed.

According to K Line’s latest report, for the past year, since it revealed its medium-term management plan, the company had to revise the target for the number of co-owned vessels with other companies as well as the date for achieving the set targets.

However, demand for LNG is expected to remain firm in the medium- to long-term, the company said.

For the moment, the LNG carrier market condition is expected to be relatively sluggish throughout fiscal 2016 due to delays in the start of new LNG projects.

In the medium- to long-term, the market condition is expected to stay firm against the backdrop of robust demand in emerging markets in Southeast Asia and other regions, K Line said.

K Line further added that it intends to expand its earnings by adapting to the demand for LNG carriers that is changing due to the diversification of exporting regions.

LNG World News Staff