More LNG bunkering points added in Japan

Market: Natural gas
27/06/23

A Japanese group plans to start ship-to-ship LNG bunkering in Osaka and Setouchi in the April 2026-March 2027 fiscal year with the launch of a new LNG bunkering ship in west Japan, in addition to operations at Ise/Mikawa bay and Tokyo bay.

The joint venture Osaka Bay LNG Shipping, which is more than 50pc owned by gas retailer Osaka Gas, shipping firm NS United Kaiun Kaisha and port operator Kobe-Osaka International Port, will place an order to build an LNG bunkering vessel with a subsidy provided by the country's land and transportation ministry.

The new ship will have 1,500t of LNG capacity, operating mainly in Osaka bay. Marine-use LNG will be loaded from Osaka Gas' Senboku No.2 and Himeji LNG terminals, and it will also delivery the LNG in the east Setouchi area. Around 100,000 t/yr of LNG is expected to be supplied as a marine fuel to LNG-fuelled vessels, such as bulkers, car carriers and container ships, Osaka Gas said.

The group is considering e-methane bunkering with the new ship in the future, aiming for further contribution to marine fuel decarbonisation, but the target timing was still unclear, Osaka Gas added.

LNG bunkering operations in Japan started in 2020 in Ise/Mikawa bay, mainly for Japanese auto manufacturer Toyota. An LNG bunkering barge in Kaguya is based at power utility Jera's Kawagoe LNG import terminal in Mie prefecture.

The LNG bunker barge Eco Bunker Tokyo Bay was also launched in 2020 for LNG bunker operations in the Tokyo bay area. The ship is based at Tokyo Gas's Sodegaura LNG import terminal in Chiba prefecture, although it is not confirmed if operations have started or not.

Another group comprising shipowner Nippon Yusen Kaisha (NYK), trading house Itochu, utility Kyushu Electric and gas retailer Saibu Gas is also studying LNG bunkering in Setouchi and Kyushu in south Japan.

Japanese shipping firms are accelerating next-generation ship deployment, including LNG-fuelled vessels. NYK plans to commission 45 ships — 31 LNG-fuelled, three ammonia-powered, eight LPG-fuelled and three methanol-powered vessels — to reduce scope 1 emissions during 2023-31.

Japanese shipowner Mitsui OSK Line also plans to launch 90 LNG and methanol-fuelled vessels by 2030, advancing the fuel switch from conventional bunker fuel before non-fossil fuels such as ammonia, hydrogen and synthetic fuels are widely adopted as marine fuels.

By Maiko Nakashima

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