Singapore-based Kumiai Navigation is to expand its fleet with dual-fuel VLGC newbuildings and is mulling plans to retrofit its existing gas carriers with dual-fuel engines.
Kumiai’s managing director Tomomaru Kuroyanagi told TradeWinds that he has inked a letter of intent with Japan’s Kawasaki Heavy Industries (KHI) for two dual-fuel 86,700-cbm vessels.
He did not say when the official contract would be signed but said the VLGCs will be capable of carrying ammonia. The duo’s delivery is slated for 2025.
“We [Kumiai] already have three dual-fuel VLGCs — two on the water and one to be delivered in June,” said Kuroyanagi.
Including the latest order, Kuroyanagi said his company is spending more than $410m on dual-fuel VLGCs.
He added that Kumiai is also considering retrofitting its existing VLGCs with dual-fuel engines, which would cost about $14m per ship. It has four vessels that were built between 2013 and 2020.
“Increasing demands for environmental protection are accelerating. The market for newbuildings is soaring … but it will be difficult to survive as a shipowner unless you invest aggressively in this area,” said Kuroyanagi.
Kumiai is a VLGC tonnage provider. It did not disclose if it has charters lined up for the two VLGCs at KHI.
As for the 84,000-cbm VLGC newbuilding that is due to be delivered from KHI next month, the ship is chartered out to Dubai’s BGN International. The charter period and rate were not known.
Kumiai’s existing six VLGCs are fixed out to Equinor, Gyxis and Astomos Energy.
Kuroyanagi is optimistic about the VLGC market for the next 12 months.
“It should be a healthy [market],” he said. However, if demand in China falls and the Ukraine situation gets worse, it may affect the sector, he cautioned.
Kumiai also has one ultramax bulk carrier under construction at Oshima Shipbuilding to be delivered in the first quarter of 2023.
The 64,000-dwt newbuilding was ordered early last year as part of the company’s fleet expansion plan.
Shipbuilding sources believe Kumiai has paid about $27m for the ultramax that will meet the International Maritime Organization’s Energy Efficiency Design Index, or EEDI, Phase 3 standards.
Kumiai is a subsidiary of Japan’s Kumiai Senpaku that operates independently. The shipping outfit has 12 bulkers, six VLGCs and two small LPG carriers on the water. Its bulker fleet consists of five newcastlemax bulkers, four supramax/ultramax, one kamsarmax, one panamax and a capesize.
Kumisen