Japanese shipping company Nippon Yusen Kaisha (NYK Line) plans to charter LNG-fuelled ships for Japanese utility Jera and steel producer JFE Steel.
NYK Line signed on 30 January a term charter agreement with Jera to operate a new 174,000m³ membrane-type LNG-fuelled LNG carrier after 2027 when South Korean shipbuilder Hyundai Samho Heavy Industries finishes construction. The vessel is equipped with a next-generation dual fuel engine, which can burn both boil-off gas, gasified LNG in the ship's cargo and conventional marine fuel. It can curb methane emissions by maximum 50pc compared with heavy fuel oil engines, NYK said.
This is NYK Line's 11th charter agreement with Jera to operate LNG carriers. Jera's LNG consumption is likely to increase as the firm is planning to complete an upgrade and begin operations of three 780MW combined-cycle gas turbine (CCGT) units at its Goi power plant during 2024-25. It also began commercial operations at the 650MW Anegasaki No.3 CCGT unit in August 2023.
NYK Line will also operate a new LNG-fuelled Capesize bulker SG Ocean with 210,000 dead weight tonne under the term charter agreement with JFE Steel, delivering iron ore and coal from Australia to Japan. The ship has been built by domestic shipbuilder Japan Marine United in west Japan's Mie prefecture. NYK Line received the vessel on 30 January.
The ship is also equipped with a dual fuel engine, which can burn LNG and conventional marine fuel. NYK Line expects to reduce emissions of sulphur oxide by 100pc, nitrogen oxide by 75pc and carbon dioxide by 25pc compared with heavy fuel oil.
JFE Steel plans to shift its fleet to LNG-fuelled vessels, aiming to introduce ammonia and carbon recycled methane-fuelled bulk carriers to achieve decarbonisation of its operations.

