Kawasaki Kisen Kaisha, Ltd. (“K” Line) has agreed a contract with Kawasaki Heavy Industries for a 86,700 m3 LPG/ammonia carrier newbuilding. The dual-fuel newbuilding will be powered by an engine capable of operating on either LPG or VLSFO, the ship owner confirmed.

The order follows the agreement of a time charter agreement between K Line and Japan-based GYXIS Corporation. The order is the first of its kind by K Line for an LPG-fuelled LPG/ammonia carrier.

The order is also significant as K Line confirmed that the newbuilding would be designed to transport ammonia. KHI noted that the order was the first received by the yard for a dual-purpose vessel capable of carrying LPG and liquid ammonia gas (LAG) concurrently.

K Line noted that ammonia is useful as an alternative means of transporting hydrogen, as well as representing an interesting alternative as a potential zero-emission fuel in its own right.

The newbuilding project will feature a LPG-fuelled two-stroke propulsion system for the main engine. K Line estimates that the order will reduce CO2 emissions by around 20%, SOx emissions by 90-100%, and NOx by 10-15% while operating in LPG fuel mode by comparison with existing VLGCs.

The 230-metre very large gas carrier is expected to be delivered from KHI's Sakaide shipyard in 2023. KHI announced that the order was closely followed by a second order, placed on behalf of ENEOS Ocean, for an LPG/ammonia carrier.