Japan adds to LNG bunkering options

Japan adds to LNG bunkering options

Tokyo, 29 March (Argus) — A Japanese cross-industry group are planning LNG bunkering operations in the Kyushu and Setouchi areas, with the country's third LNG bunker barge to be launched in 2024.

The joint venture Keys Bunkering West Japan today placed an order to build a 3,500m³ LNG bunkering vessel with Japanese shipbuilder Mitsubishi Shipbuilding for a delivery targeted in March 2024, following an initial agreement in September last year. The vessel can run on LNG or marine gasoil.

Keys was set up in February, with 40pc each owned by utility Kyushu Electric and shipowner Nippon Yusen Kaisha (NYK), 15pc owned by trading house Itochu and 5pc by gas retailer Saibu Gas.

Marine fuel use LNG will be initially supplied from the Tobata LNG import terminal in north Japan's Kyushu island, which already has loading outlet facilities for LNG bunker barges. The Oita and Hibiki terminals could be other options to deliver LNG after remodelling their infrastructure, Kyushu Electric said.

The barge will be Japan's third LNG bunkering vessel to cover the country's southern Kyushu and western Setouchi area, following the central Ise/Mikawa bay and Tokyo bay regions. The Japanese government is encouraging domestic shipowners to use LNG as a marine fuel, with the