Top > News Releases > "K"LINE Inks Time Charter Agreement with Tangguh Production Sharing Contractors for three new 153,200m3 LNG Carriers

July 27, 2005
Kawasaki Kisen Kaisha, Ltd.

"K"LINE Inks Time Charter Agreement with
Tangguh Production Sharing Contractors
for three new 153,200m3 LNG Carriers

On July 27, a group company of Kawasaki Kisen Kaisha, Ltd. ("K"Line), together with its Indonesian consortium partner, PT. Pelayaran Nusantara Meratus(**), executed three 20-year long-term charter agreements(*) for three new LNG carriers(***) for Tangguh LNG Project with the Tangguh Production Sharing Contractors (****) operated by BP Indonesia.

The Tangguh LNG project has purchase and sales agreements to four customers: about 3.7 million tons to Sempra's terminal near Ensenada in Baja California, Mexico, 2.6 million tons to the Fujian LNG terminal in China,; about 0.8 million tons to K Power of Korea, and 0.55 million tons to POSCO in Korea.
The Project had been in a bidding process to procure seven LNG carriers for Ex-ship agreements, one to Korea and six to Mexico, out of which "K"Line consortium has successfully been awarded three vessels.
In addition to the already executed ship building contracts for two vessels with Samsung Heavy Industries Co., Ltd., "K"Line had executed an additional shipbuilding contract with the same shipyard for the third vessel with identical specifications to the two already ordered. These newly built vessels adopted the most modern Dual Fuel Diesel Electric (DFDE) Engines instead of traditional steam turbine engines achieving better fuel efficiency and more environmental benefit, while increased cargo tank capacity of 153,200m3 leads to more economical efficiency as well.

"K"Line's LNG current fleet of 36 vessels in total, including 9 on order, will be increased to 39 with these new three vessels. The number of its ship management will increase as well, from 9 (including 5 on order) to 12.

"K"Line, keeping its first priority to safety in its services, will keep committing itself to contributing to the expansion of LNG business by participating aggressively in LNG projects in and out of the country.

(*) Main Terms of the time charter agreement

Owner "K "Line LNG Shipping (UK) Limited
Charterer The Tangguh Production Sharing Contractors
Term 20 years
Sailing Route Pacific Basin
(**) Company profile of PT. Meratus (as of 31st December, 2004)
Head office Surabaya
Number of Fleet 35 (a major shipping company in Indonesia providing inter-island services)
(***) Ship Particulars
Builder Samsung Heavy Industries Co., Ltd.
Delivery August 2008-April 2009
Cargo Tank Capacity Approx 153,200m3
Cargo Tank Type GTT MARKIII
LOA/Breadth Approx 285.0 m / 43.4 m
Full Draft 11.5m
Gross Tonnage 98,000 tons
Speed 19.5 knot
(****) Tangguh Production Sharing Contractors
BP Berau Ltd. 37.16%
CNOOC 16.96%
MI Berau B.V. 16.30%
Nippon Oil Exploration (Berau), Ltd. 12.23%
KG Berau Petroleum Ltd. 10.00%
LNG Japan 7.35%

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