MOL and JERA have signed a long-term charter agreement for two ammonia carriers that will transport low-carbon ammonia from the Blue Point Project in Louisiana to Japan’s Hekinan Thermal Power Station from around fiscal 2029. The deal is a key step toward establishing Japan’s first large-scale low-carbon ammonia value chain and supporting ammonia co-firing in power generation.
Tokyo, Japan | June 18, 2026 – Mitsui O.S.K. Lines (MOL) and Japanese power utility JERA have signed a long-term time charter agreement for two very large gas carriers (VLGCs) that will transport low-carbon ammonia from the United States to Japan, marking a significant milestone in the development of what is expected to become Japan’s first large-scale low-carbon ammonia value chain.
Under the agreement, the vessels will transport ammonia produced at the Blue Point Project in Louisiana, a U.S.-based low-carbon ammonia development in which JERA holds an investment stake. Deliveries are scheduled to begin around fiscal year 2029, with cargoes destined for JERA’s Hekinan Thermal Power Station in Aichi Prefecture.
The deal represents one of the most concrete commercial steps taken to date in establishing an international ammonia supply chain capable of supporting Japan’s long-term decarbonization objectives and energy security strategy.
Building a Commercial Ammonia Transport Network
The latest charter agreement follows several years of collaboration between the two companies.
MOL and JERA first launched a joint study into ammonia transportation in 2022 as Japan accelerated efforts to introduce ammonia as a lower-carbon energy source for thermal power generation and industrial applications. The partnership advanced further in December 2025 when the companies signed heads of agreement covering the charter of ammonia carriers.
The newly finalized long-term charter contract converts those earlier plans into a commercial shipping arrangement, providing dedicated maritime transportation capacity for ammonia imports from North America.
For MOL, the agreement strengthens its position in what many industry participants view as one of the most promising emerging segments within the alternative-fuels shipping market.
Strategic Role of Ammonia in Energy Transition
Ammonia is increasingly attracting attention as a key component of global decarbonization efforts due to its ability to transport and store hydrogen efficiently while producing no carbon dioxide emissions at the point of combustion. The fuel is being explored for multiple applications, including power generation, marine fuel, industrial heating and hydrogen distribution.
Japan has emerged as one of the world’s most active proponents of ammonia utilization, viewing the fuel as a means of reducing emissions from existing thermal power plants while supporting energy diversification. Demand for ammonia is expected to rise substantially over the coming decades as governments and industries seek scalable pathways toward net-zero emissions.
Industry analysts expect seaborne ammonia trade to become one of the fastest-growing commodity shipping markets, creating new demand for specialized gas carriers and associated infrastructure.
Blue Point Project at Center of Supply Chain
The ammonia transported under the agreement will originate from the Blue Point Project in Louisiana, a large-scale low-carbon ammonia development designed to supply international energy markets. Low-carbon ammonia refers to ammonia produced through processes that significantly reduce carbon dioxide emissions compared with conventional manufacturing methods.
Projects in the United States Gulf Coast are increasingly being positioned as future export hubs for low-carbon fuels, leveraging access to natural gas resources, carbon capture infrastructure and established energy export networks. The Louisiana project is expected to become an important supply source for Japan’s growing imports of low-carbon fuels.
Newbuild VLGCs Designed for Ammonia Transport
The vessels assigned to the project will be approximately 87,000-cubic-meter very large gas carriers being constructed by Kawasaki Heavy Industries. Each vessel will measure approximately 230 meters in length with a beam of 37.2 meters and is scheduled for delivery during the first half of 2027.
The ships will be among a growing number of ammonia-capable carriers being ordered as shipowners prepare for increased global ammonia trade. The emergence of dedicated ammonia transport capacity is considered essential for the development of large-scale international ammonia supply chains, particularly those linking production centers in North America and the Middle East with demand hubs in Asia.
Growing Interest in Ammonia Shipping
The charter agreement comes amid rising investment across the ammonia value chain. Shipowners, energy producers, utilities and commodity traders are increasingly positioning themselves for a future in which ammonia plays a larger role in the global energy mix.
Several major shipping companies have announced ammonia carrier newbuildings, while ports and terminal operators are exploring infrastructure investments to handle growing volumes of ammonia imports and exports.
For Japan, securing reliable transportation capacity is a critical component of efforts to establish long-term ammonia supply arrangements capable of supporting domestic decarbonization targets.
Supporting MOL’s Net-Zero Strategy
The project aligns with MOL’s environmental strategy under its BLUE ACTION 2035 management plan and the company’s goal of achieving net-zero greenhouse gas emissions by 2050. MOL has identified alternative fuels and next-generation energy transportation as key growth areas and has expanded investments across ammonia, hydrogen, methanol and LNG-related businesses.
The company believes that developing expertise in the safe transport of ammonia will be essential as demand for low-carbon fuels accelerates worldwide. By participating in both transportation and broader supply-chain development, MOL aims to play a central role in the commercialization of low-carbon ammonia markets while supporting the wider transition toward a decarbonized energy system.
With long-term cargo demand now secured through JERA, the agreement provides a tangible foundation for one of the most ambitious ammonia import projects currently under development in Asia and highlights the growing importance of maritime transport in enabling future clean-energy trade flows.
About Mitsui O.S.K. Lines, Ltd. (MOL)
Mitsui O.S.K. Lines – MOL is a global leader in shipping, operating over 800 ships worldwide. Its diverse fleet includes bulk carriers, liquefied natural gas carriers, Ro-Ro car carrier ships, and oil tankers, among others. Beyond traditional shipping, MOL also engages in social infrastructure businesses, including real estate, terminal and logistics, and offshore wind power. With one of the largest merchant fleets and 140 years of history, MOL aims to be a resilient corporate group that provides new value to all stakeholders.
Source: Mitsui O.S.K. Lines