Japanese Quartet to Study LNG Bunkering in Western Japan

Japan's NYK Line, Kyushu Electric Power, Saibu Gas and Chugoku Electric Power have signed a memorandum of understanding (MoU) related to joint discussions on LNG bunkering in western Japan.

The four entities will discuss commercialisation of a new business to supply LNG as marine fuel to ships in the Setouchi and Kyushu areas of western Japan, they said in a joint statement August 2.

“Demand for LNG as a marine fuel, a practical alternative to heavy fuel oil because of its relatively low emission of air polluting substances and greenhouse gases, is expected to increase after a global 0.5% sulphur cap is introduced in 2020. Therefore, NYK and the three companies have decided to examine the commercialization of an LNG bunkering business in the Setouchi and Kyushu,” they said.

In May, four Japanese firms formed a separate joint venture to cooperate over LNG bunkering in Japan: shipowners Kawasaki Kisen Kaisha (K Line), Nippon Yusen Kabushiki Kaisha (NYK Line), key Japanese utility Chubu Electric Power, and Toyota Tsusho Corporation (the trading arm of Toyota Group). 

Studies suggest that compared with heavy fuel oil, the use of LNG can reduce emissions of sulphur oxides (SOx) and particulate matter (PM) by about 100%, nitrogen oxides (NOx) by as much as 80%, and carbon dioxide (CO₂) by about 30%.