Japanese energy group Osaka Gas has launched a new ship-to-ship (STS) LNG bunkering business in the Osaka Bay and Seto Inland Sea in southern Japan.
The new venture is expected to begin operations in 2026, with the introduction of a 1,500-tonne-capacity LNG bunkering vessel.
“This commercial undertaking, in which Osaka Gas will sell and provide LNG, aims to supply LNG fuel to LNG-fuelled ships using a bunkering vessel, which will carry LNG loaded at the facilities located in Osaka Gas’ LNG terminals,” a spokesperson for Osaka Gas said.
New JV to launch 1,500t bunker vessels
The new endeavour signifies Osaka Gas’ entry into the burgeoning field of STS bunkering and is also expected to boost utilisation at the firm’s LNG terminals. The initiative has received backing from the Ministry of Land, Infrastructure, Transport and Tourism’s LNG bunkering hub development program for fiscal 2023.
A new company, Osaka Bay LNG Shipping (OLS), has been established to spearhead the construction of the bunkering vessel, formed as a joint venture between Osaka Gas International Transport (OGIT), NS United Coastal Tanker Kaisha (NSUT), and Kobe-Osaka International Port Corporation (HPC).
“In this commercial enterprise, OLS will own the LNG bunkering vessel to be constructed under the subsidy program, NSUT, an established LNG coastal vessel operator, will manage and operate the vessel, and HPC will promote the business and LNG bunkering across the shipping industry in cooperation with the relevant government agencies, port administrator and officials,” an official from Osaka Gas explained.
Focus on e-methane
The launch of this STS LNG bunkering business comes at a time when the global maritime industry is undergoing a paradigm shift towards more environmentally friendly fuel options. With the International Maritime Organization's target of achieving a 50% reduction in greenhouse gas emissions by 2050 compared to the levels in 2008, the demand for LNG as a marine fuel is anticipated to increase exponentially.
Alongside traditionally sourced LNG, Osaka Gas also aims to focus on the development of e-methane - carbon-neutral synthetic methane produced through a methanation process using non-fossil fuel energy sources such as green hydrogen.
The Daigas Group, of which Osaka Gas is a part, aims to not only expand the LNG bunkering business but also to achieve the commercialization of e-methane and its application in bunkering, as part of a strategy “to contribute to the lower carbon and decarbonized marine transportation industry.
