Nippon Yusen Kabushiki Kaisha (NYK Line) recently stated 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 growing global demand for this low-carbon fuel.
NYK Line President and CEO 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. He emphasized that in the global energy transition, LNG has become an indispensable part of decarbonization strategies.
Natural gas is seen as a crucial energy source for replacing highly polluting fossil fuels like coal, and it can also serve as a “backstop” when the supply of renewable energy sources like wind and solar is unstable. The industry expects that with the commencement of new projects in the United States, Qatar, and elsewhere, global LNG supply will increase significantly starting next year. According to Shell’s forecast, LNG consumption is expected to grow by about 60% from current levels by 2040.
Meanwhile, according to the latest forecast from Capital Clean Energy Transport (CCEC), global LNG production capacity will increase by approximately 300 to 350 million tonnes by 2030, and the market will actually require over 500 LNG carriers. Although there are already nearly 300 new vessel orders, with steam turbine vessels being phased out at an accelerated pace and scrapping volumes continuously increasing, the demand for a new generation of energy-efficient and environmentally friendly vessels 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 globally. 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.
