Japan: MOL Inks Long-Term LNG Transport Agreement

Mitsui O.S.K. Lines, Ltd. today announced the conclusion of a contract for a long-term liquefied natural gas (LNG) transport with Osaka Gas Co., Ltd.  and Kyushu Electric Power Co., Ltd.

As MOL has concluded the contract with Osaka Gas and Kyushu Electric Power, it will soon sign a contract with Mitsubishi Heavy Industries Co., Ltd. (MHI) for construction of a 155,000cm3 LNG carrier.

The vessel will transport LNG that Osaka Gas and Kyushu Electric Power purchase through the Australia Ichthys LNG project. This contract marks the first time that an LNG carrier, wholly owned by a Japanese shipping company, will serve on joint transport for electric power and gas companies in Japan.

The contract has been signed for a 12 year term from 2020.

The main shipping routes will be from Ichthys LNG liquefaction terminal to cargo owner receiving terminals, amounting to a transport volume of 800,000 tons/year for Osaka Gas and 300,000 tons/year for Kyushu Electric Power.

LNG has drawn attention as an environment-friendly energy resource. New large-scale projects are being planned in North America and East Africa, setting the stage for increased demand for LNG transport. MOL strives to further expand its LNG transport services by using experience, know-how, and networks accumulated as the world’s largest LNG carrier owner and management company by meeting a broad range of customer needs.

The new LNG carrier is the same type as two newbuilding vessels (constructed by MHI) slated for launching in 2014 and 2015 to transport LNG to Osaka Gas. It features a continuous tank cover that houses the four spherical LNG storage tanks, reducing weight while maintaining the overall vessel strength. It also adopts a new steam turbine engine that captures and uses reheating steam, contributing to higher fuel efficiency.

[mappress]
MOL, May 16, 2013