This will include tankers, boxships and car carriers.

It believes demand for next-generation ships is expected to grow over the medium to long term as regulators seek 30% cuts in emissions and LNG prices fall.

The Sakaide shipyard has been earmarked for the work.

A large LNG-fuelled containership would cost more than JPY 10bn ($108m), it estimates, 10% to 20% more than conventional vessels.

A