The marine shipper will develop the carrier with Kawasaki Heavy Industries Ltd. and the Norwegian body that approves technological standards for ships.
The carrier is expected to be 143m long and be able to ship around 2,000 autos. It will be fitted with Kawasaki Heavy's gas engines. Nitrogen oxide emissions also will be 80-90% lower than with conventional diesel engines. The ship is set to start operating in fiscal 2015.
Kawasaki Kisen will use the carrier to meet tougher European exhaust standards and deal with surging fuel oil prices. Once complete, the ship will be operated by a group firm transporting cars in Europe.
Although LNG powers ferries and other vessels overseas, its use in cargo vessels is uncommon.
Kawasaki Kisen did not give a cost estimate for building the carrier, but it is likely to be more expensive than those powered by fuel oil.