Japan’s shipping giant Mitsui O.S.K. Lines (MOL) has set its sights on a careful evaluation of the use of Chinese and South Korean shipyards that meet its criteria while taking into consideration the changes in U.S. policy trends and geopolitical risks to meet the demand for liquefied natural gas (LNG) vessels.
Following the recent media speculation about MOL intending to suspend new LNG carrier orders to Chinese shipyards, the Japanese player has clarified that it will exercise “prudent judgment” in selecting shipyards for any new LNG carrier orders, taking the current geopolitical circumstances into account.
“LNG plays a significant role as an energy source supporting the global transition to a decarbonized society. MOL’s mission is to support stable energy supplies in Japan and the world as a leading LNG transportation operator. Securing a stable LNG transportation infrastructure is essential to meet this demand,” emphasized the company.
While explaining that there is a limited number of shipyards in the world capable of building high-quality LNG carriers to provide a stable LNG transportation, MOL highlights that Chinese shipyards are an “important partner” to ensure diversification and flexibility in procurement sources.
“MOL will continue to carefully assess the use of Chinese shipyards that meet its quality and safety standards, alongside South Korean shipyards, while taking a comprehensive view of future U.S. policy trends and geopolitical risks, to fulfill the global demand for LNG transportation,” underlined the Japanese player.
The U.S. policy settings for Chinese-built vessels and those owned or operated by entities with ties to the Asian country, set to come into power in October 2025 and get a boost each April, encompass tariffs ranging from $18 per net ton to $120 per container, with exemptions reserved for certain specific cases such as ships carrying U.S. government cargo.
Recently, many shipping companies, which have been ordering LNG carriers from Chinese shipyards, are now closely monitoring the trends, such as the U.S.‘ consideration of additional port fees for Chinese-built vessels, and other influencing factors.
Meanwhile, MOL placed an order with Dalian COSCO KHI Ship Engineering in China earlier this month for a new LNG-fueled very large crude carrier (VLCC).