Kawasaki Kisen Kaisha, Ltd. (“K” Line), Chubu Electric Power Co., Inc., Toyota Tsusho Corporation and Nippon Yusen Kabushiki Kaisha (NYK Line) have agreed to launch an LNG Bunkering business in Japan. They marked the decision by establishing two Joint Ventures (JV) on May 10.
The companies say LNG is expected to become an important alternative to heavy fuel oil due to its low emission rate of air polluting substances and greenhouse gases, which will enable ships to meet increasingly stringent international regulations on emissions.
Compared to heavy fuel oil, the use of LNG can reduce emissions of sulfur oxides (SOx) and particulate matter (PM) by approximately 100%, nitrogen oxides (NOx) by as much as 80%, and carbon dioxide (CO2) by approximately 30%.
As per the announcement on January 26, 2018, the four companies have been in joint discussions on the commercialization of LNG Bunkering Business in the Chubu (central region) of Japan. The four companies have now agreed to launch the business, and have established two joint ventures to run the LNG Bunkering Business:
- Central LNG Marine Fuel Japan Corporation (business: LNG bunkering business)
- Central LNG Shipping Japan Corporation (business: Ownership of the LNG Bunkering Vessel)
Going forward, each of the four companies will utilize the expertise and strengths that they each possess to propel the “Ship-to-Ship Bunkering” business. Ship-to-Ship is a method of bunkering where an LNG Bunkering vessel comes alongside an LNG Fueled vessel to supply LNG at different locations such as along the quayside, pier or at anchor.
Source: NYK Line
Related article: Japanese 4 Study Commercialization of LNG Marine Fuel