Key facts
- Three Japanese shipbuilders plan to resume domestic LNG carrier construction around 2035.
- The initiative aims to build three to five LNG carriers annually.
- The Japanese government is investing approximately 1 trillion yen over the next decade to support the sector.
- Imabari Shipbuilding, Kawasaki Heavy Industries, and Namura Shipbuilding are the key companies involved.
- The move is driven by energy security concerns and a desire to rebuild the shipbuilding industry.
Japan is set to resume domestic construction of liquefied natural gas (LNG) carriers around 2035, with three major shipbuilders—Imabari Shipbuilding, Kawasaki Heavy Industries, and Namura Shipbuilding—leading the effort. This strategic move, supported by significant government investment and potentially South Korean technology, aims to bolster Japan's energy security and re-establish its presence in the high-value shipbuilding sector after a seven-year absence.
The Japanese government views shipbuilding as a critical strategic industry, second only to semiconductors and AI, and plans to invest approximately 1 trillion yen over the next decade to expand domestic shipbuilding output to 18 million gross tons by 2035. Imabari Shipbuilding, which recently merged with Japan Marine United to become the world's fourth-largest shipbuilder, is expected to play a central role, potentially utilizing the Koyagi plant of Oshima Shipbuilding. This facility was formerly part of Mitsubishi Heavy Industries' LNG carrier operations.
Japan's renewed focus on LNG carrier construction is driven by concerns over energy security, as the nation imports 98% of its LNG, and by geopolitical considerations, particularly deteriorating relations with China, a current major supplier of LNG carriers. The government is pushing an "All Japan" collaborative framework involving shipping companies, shipyards, and equipment suppliers. Japan's major shipping firms, which collectively hold about 30% of the global LNG transportation market, are expected to provide stable order backlogs for domestic shipyards. Global demand for LNG carriers is also anticipated to rise due to increased U.S. LNG exports and Europe's efforts to diversify its energy sources away from Russia.