In a landmark move toward a more sustainable maritime industry, Osaka Gas Co., Ltd. has officially launched Japan’s first shore-to-ship LNG (liquefied natural gas) bunkering service. The initiative establishes Osaka Gas as the first gas utility company in the country to provide LNG fuel directly from a terminal to ocean-going vessels, further expanding its role in promoting low-emission fuel alternatives.
The debut delivery was successfully conducted today at Senboku LNG Terminal in Takaishi City, Osaka Prefecture, where LNG was transferred directly from shore-based infrastructure to the VERDE HERALDO, an LNG-powered ship operated by Mitsui O.S.K. Lines, Ltd. (MOL). The vessel is engaged in transporting raw materials for JFE Steel Corporation, one of Japan’s largest steel manufacturers.
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A Major Step in Japan’s LNG Bunkering Evolution
This new service builds on Osaka Gas’s existing truck-to-ship LNG bunkering service, which has been in operation since 2019. Through its subsidiary Daigas Energy Co., Ltd., Osaka Gas has previously supplied LNG to ships like the Ishin, an LNG-fueled tugboat operated by Nippon Eisen Shipping Corporation, part of the MOL Group.
The newly launched shore-to-ship bunkering approach represents a more efficient and scalable method, delivering fuel directly from terminal facilities to vessels moored at the port. This is a critical development in Japan, where LNG bunkering infrastructure remains limited, posing a challenge to the growing fleet of LNG-powered ships.
Next Phase: Ship-to-Ship Bunkering by 2026
Looking ahead, Osaka Gas plans to further extend its capabilities with the introduction of ship-to-ship LNG bunkering, scheduled for fiscal 2026. This future service will involve a dedicated LNG bunkering vessel currently under construction by Shitanoe Shipbuilding Co., Ltd. in Oita Prefecture. The shipbuilding initiative has been formally recognized by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) under the 2023 LNG Bunkering Base Formation Project, a government-supported effort to boost LNG bunkering infrastructure in Japan.
Aligning with Global Climate Goals
This multilayered LNG bunkering strategy positions Osaka Gas to respond to the rapidly growing demand for LNG-fueled vessels—a demand driven by global regulatory pressure and decarbonization efforts. The International Maritime Organization (IMO) has set an ambitious target for the maritime sector to achieve net-zero greenhouse gas emissions by 2050.
By providing stable and flexible LNG fuel supplies, Osaka Gas aims to become a central player in enabling the transition away from traditional heavy fuel oil. LNG, with its lower carbon footprint and reduced emissions of sulfur oxides and nitrogen oxides, is increasingly viewed as a vital transitional fuel for the shipping industry.
Toward a Carbon-Free Future: Exploring E-Methane
Further reinforcing its commitment to decarbonization, Osaka Gas is also exploring the future use of e-methane, a synthetic methane produced using renewable electricity and carbon dioxide, as a next-generation marine fuel. This initiative is in line with the company’s broader “Daigas Group Energy Transition 2050” strategy, which outlines a roadmap toward a low-carbon and ultimately carbon-neutral future.
About Osaka Gas and Daigas Group
Osaka Gas, a core company of the Daigas Group, is a major energy provider in Japan, with operations spanning the production and supply of city gas, LNG, LPG, and electricity, as well as international energy development, investment, and LNG transport. The Daigas Group’s diversified energy services and its growing role in energy transition initiatives underscore its long-term commitment to sustainable energy solutions, both domestically and globally.
Source Osaka Gas