Nippon Yusen Kabushiki Kaisha (NYK Line) recently announced that the company plans to increase the size of its liquefied natural gas (LNG) carrier fleet by approximately 50% by early 2029 to meet the continuously growing global demand for this low-carbon fuel.
NYK Line President Takaya Soga pointed out in a media interview that inquiries from customers have increased significantly in recent years, and the company must accelerate its expansion pace. He emphasized that in the global energy transition process, LNG has become an indispensable part of decarbonization strategies.
Natural gas is regarded as an important energy source for replacing highly polluting fossil fuels like coal, and it can also play a “backstop” role when the supply of renewable energy such as wind and solar power is unstable. The industry predicts that with the successive commissioning of new projects in the United States, Qatar, and other regions, global LNG supply will increase significantly starting next year. According to Shell’s forecast, LNG consumption is expected to increase by about 60% by 2040 from the current level.
Meanwhile, according to the latest forecast from Capital Clean Energy Transport Company (CCET), approximately 300 to 350 million tonnes of new LNG production capacity will be added globally by 2030, and the market will actually require over 500 LNG carriers. Although there are already orders for nearly 300 new vessels, with the accelerated phase-out of steam turbine vessels and continuously increasing scrapping volumes, the demand for a new generation of energy-efficient and environmentally friendly ships is steadily rising.
The increase in transport demand will drive capacity expansion. Data from the International Group of Liquefied Natural Gas Importers (GIIGNL) shows that as of the end of last year, there were 831 LNG carriers in operation worldwide. Shipbroker BRS, on the other hand, estimates that the global market will need to add approximately 241 more vessels by 2034.
Currently, NYK Line operates and manages a total of 89 LNG carriers. The company plans to expand its fleet to over 130 vessels by early 2029. At the same time, another Japanese shipping giant, Mitsui O.S.K. Lines (MOL), is also actively increasing its LNG carrier capacity.
