Japan expands shipbuilding capacity and LNG infrastructure

Japan is initiating a large-scale revival of its shipbuilding industry to bolster energy security and defense capabilities. Namura Shipbuilding plans to construct a new large-scale dock in Imari Bay, Saga Prefecture, by 2035. This marks the first new large-vessel dock built in Japan in 18 years. The project, which may cost approximately 100 billion yen ($650 million), aims to resume the domestic construction of liquefied natural gas (LNG) carriers, a sector that has struggled to compete with South Korean manufacturers since 2019.

In a separate development related to LNG infrastructure, Japanese shipping company Mitsui O. S. K. Lines (MOL) has signed a long-term charter agreement with Germany’s Deutsche ReGas. The deal involves deploying a floating storage and regasification unit (FSRU) at the Deutsche Ostsee LNG terminal in Mukran. The unit will be converted from an LNG carrier at Hudong-Zhonghua Shipbuilding in China and is expected to begin service in 2028 to support European energy resilience.