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SHIP-TO-SHIP LNG BUNKERING AGREEMENT SIGNED IN JAPAN

SHIP-TO-SHIP LNG BUNKERING AGREEMENT SIGNED IN JAPAN

Wednesday, September 29, 2021 

Nippon Yusen Kabushiki Kaisha (NYK Line), Itochu Enex Kyushu Electric Power Company, and Saibu Gas have signed a memorandum of understanding (MoU) for joint discussions on the commercialisation of a new business to supply liquefied natural gas (LNG) as a marine fuel to ships in the Setouchi and Kyushu areas of western Japan.

IMO has agreed on an ambition to reduce GHG emissions from shipping by at least 50% by 2050 compared to 2008 and GHG emissions from ships to zero as early as possible in this century. LNG fuel as a marine fuel is expected to offer a bridging solution to next-generation zero-emission fuels such as hydrogen and ammonia. Therefore, the parties have decided to examine the commercialisation of an LNG bunkering business in the Setouchi and Kyushu areas of western Japan, including marketing activities to consumers such as Kyushu Electric Power Company for its LNG-fuelled coal carriers, which are scheduled to be delivered in 2023, as well as the construction and owning of LNG vessels required for ship-to-ship supply.

According to NYK, compared to heavy fuel oil, the use of LNG can reduce emissions of SOx and particulate matter almost entirely, while NOx emissions can be cut by as much as 80%, and CO2 halved.

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