NYK and Sinopec sign LNG transportation charter deal

Japan’s shipping company NYK has concluded a long-term time-charter contract for LNG transportation with China’s energy company China Petroleum & Chemical Corporation (Sinopec).

Illustration only; Courtesy of NYK

The contract is for the transport of LNG to China for up to 23 years, beginning in 2024 or later.

NYK said that this time-charter contract will support China’s energy transition toward carbon neutrality, adding that NYK will build a good partnership with Sinopec through stable transportation and contribute to the global energy transition from coal to natural gas.

To note, this deal is NYK’s third conclusion of time-charter contracts with energy companies based in China.

In May 2022, the shipping major, through its subsidiary, signed a long-term charter contract with CNOOC Gas and Power Singapore Trading & Marketing, a group company of China National Offshore Oil Corporation (CNOOC), for six liquefied natural gas (LNG) carriers.

At the time, it also entered into a shipbuilding contract for the vessels with China’s Hudong-Zhonghua Shipbuilding and signed a project head of agreement with a subsidiary of shipping company China Merchants Energy Shipping (CMES) to jointly own and manage the vessels.