Japan Studies Restarting LNG Carrier Construction, Targeting 3-5 Vessels Annually by 2035

en.Wedoany.com Reported - Japan is jointly studying the resumption of LNG carrier construction with shipbuilders, shipowners, and the country's largest liquefied natural gas (LNG) buyers. Seven years have passed since the last domestically built LNG carrier was delivered.

Last Friday, Japan's Ministry of Land, Infrastructure, Transport and Tourism convened industry players to begin data calculations on proposed order volumes, construction timelines, shipyard investments, and costs.

Participants include Imabari Shipbuilding, Kawasaki Heavy Industries, and Namura Shipbuilding, as well as the Shipbuilders' Association of Japan, the Japanese Shipowners' Association, and LNG giant JERA. Government representatives from the Ministry of Land, Infrastructure, Transport and Tourism, the Ministry of Economy, Trade and Industry, and the Agency for Natural Resources and Energy also attended.

The Japanese government has set a target to build 3 to 5 LNG carriers annually from 2035 onward. Japan was once a major builder of LNG carriers, but since 2019, the sector has been dominated by South Korea and, increasingly, China, with Japan having delivered no domestically built LNG carriers since then.

Resuming construction will not be easy. A government roadmap released this summer acknowledges that Japan lacks experience in building the membrane-type containment systems that currently dominate the market, and that some necessary production infrastructure is insufficient. The three shipyards have been discussing collaborating to rebuild this capability, potentially leveraging South Korean technology and components.

Friday's meeting brought demand-side players into the discussion. Cargo owners indicated that if Japanese-built vessels are internationally competitive, they would consider placing orders; domestic shipowners stated they would give priority to competitive domestically built tonnage. As of the end of last year, Japanese shipping companies and energy groups controlled approximately 200 LNG carriers.

Going forward, the government will work with the industry to study expected vessel numbers, construction timelines, investment requirements, and support measures needed to make Japanese LNG carrier construction commercially viable again.