NYK, Partners to Explore Commercialization of LNG Bunkering in Western Japan
- Business & Finance
Japanese shipping company NYK and three other companies have decided to explore the commercialization of an LNG bunkering business in the Setouchi and Kyushu areas of western Japan.
NYK has signed a memorandum of understanding with Kyushu Electric Power, Saibu Gas, and The Chugoku Electric Power for joint discussions on introducing LNG supply business into the abovementioned market.
The demand for LNG as a marine fuel, an alternative to heavy fuel oil because of its relatively low emission of air polluting substances and greenhouse gases, is expected to increase after a global 0.5 percent sulfur cap is introduced in 2020.
Compared to heavy fuel oil, the use of LNG can reduce emissions of sulfur oxides (SOx) and particulate matter (PM) by approximately 100 percent, nitrogen oxides (NOx) by as much as 80 percent, and carbon dioxide (CO2) by approximately 30 percent.
The International Maritime Organization (IMO) will implement a global 0.5 percent sulfur cap on marine fuel from January 1, 2020.
Earlier this year, NYK and its compatriot shipping company K Line teamed up with Chubu Electric Power and Toyota Tsusho on establishing LNG bunkering business in Japan. The four companies launched two joint ventures in May, Central LNG Marine Fuel Japan Corporation and Central LNG Shipping Japan Corporation, which will run the business.