Osaka Gas Co., Ltd is embarking on a groundbreaking venture by introducing a ship-to-ship LNG bunkering business in the Osaka Bay and the Seto Inland Sea. This marks the first foray into this sector for the company, as they set their sights on commencing operations with a 1500-ton capacity LNG bunkering vessel in 2026. This strategic initiative involves Osaka Gas supplying and selling LNG to LNG-fueled ships, facilitated through a dedicated bunkering vessel that will transport LNG loaded at the company’s terminals.
This bunkering enterprise has been selected as a project eligible for the Ministry of Land, Infrastructure, Transport, and Tourism’s LNG bunkering hub development program for 2023, also known as the subsidy program. The construction of the bunkering vessel will be led by Osaka Bay LNG Shipping Co., Ltd (OLS), a joint venture involving Osaka Gas International Transport Inc. (OGIT), NS United Coastal Tanker Kaisha, Ltd (NSUT), and Kobe-Osaka International Port Corporation (HPC).
Under this commercial undertaking, OLS will assume ownership of the LNG bunkering vessel, which will be constructed with the support of the subsidy program. NSUT, a well-established operator of LNG coastal vessels, will be responsible for managing and operating the vessel, while HPC will collaborate with relevant government agencies, port administrators, and officials to promote the business and expand LNG bunkering across the shipping industry.
With the global drive towards decarbonizing marine fuel, there is an anticipated increase in the number of LNG-fueled vessels in operation in the coming years. The International Maritime Organization has set a target of reducing greenhouse gas emissions by 50% from the 2008 level by 2050. In line with this objective, Osaka Gas is actively developing e-methane, a carbon-neutral synthetic methane, which can be introduced to LNG-fueled vessels. This innovative approach will further accelerate the decarbonization of bunker fuel.
The Daigas Group, of which Osaka Gas is a part, aims to expand its LNG bunkering business and achieve the commercialization of e-methane, with the goal of making significant contributions to a lower carbon and decarbonized marine transportation industry.
Source Osaka Gas