Mitsubishi advances LNG carrier joint venture
Mitsubishi Corporation (MC) is to deploy a new LNG carrier to its Cameron LNG Project in the US further advancing its joint venture.
The vessel will be owned by Diamond LNG Shipping 3 Pte Ltd (DLS-3), a ship-owning joint venture formed between MC, Toho LNG Shipping Co Ltd (TLS)1, Tohoku Electric Power Co Inc (THG) and Nippon Yusen Kabushiki Kaisha (NYK).
LNG produced at Cameron is slated for sale to Toho Gas and Tohoku Electric through MC’s Singapore-based energy business subsidiary, Diamond Gas International and the vessel will be utilised to deliver LNG between the two companies.
MC invests in Cameron LNG through Japan LNG Investments LLC, a joint venture with NYK.
Back in December 2015, MC entered into a shipbuilding contract with LNG builder MI LNG Company Limited2 and signed a Heads of Agreement for Time Charter Party with its wholly owned subsidiary, Diamond Gas International Pte Ltd for the building of the new vessel as part of its efforts to secure carriers to transport LNG produced at Cameron.
MC set up DLS-3 as a wholly owned subsidiary in May 2016 to serve as the vessel’s ship-owning company.
At the time DLS-3 was established, however, there was an understanding among the partners that it would become a four-company joint venture incorporating Toho LNG Shipping, Tohoku Electric and NYK once approved by the relevant authorities and procedures for their equity participation were completed.
MC said it will continue to strengthen its LNG carrier business through projects of this nature as part of its efforts to help ensure stable energy supplies to Japan and other markets.