Japanese companies in talks to launch LNG bunkering business

Kawasaki Kisen Kaisha, Ltd. and Nippon Yusen Kabushiki Kaisha began joint discussions with two other Japanese companies regarding the commercialization of a new venture to supply liquefied natural gas as a marine fuel to ships in Japan’s central region.    Ocean carriers Kawasaki Kisen Kaisha, Ltd. (“K” Line) and Nippon Yusen Kabushiki Kaisha (NYK Line) have begun joint discussions with two other Japanese companies regarding the commercialization of a new venture to supply liquefied natural gas (LNG) as a marine fuel to ships in Japan’s central region, the companies confirmed Friday.
   In addition to “K” Line and NYK, the firms involved in the discussions are Chubu Electric Power Co., which supplies electric utilities to the middle of Japan’s main island; and trading company Toyota Tsusho Corp., a member of the Toyota Group of companies, which includes Toyota Motor Corp.
   The four companies have said they plan to jointly discuss specific LNG customers and supply methods in preparation for the commercialization of LNG bunkering business. No timetable has been provided regarding when a decision might be made, or how soon services could commence.
   As for the rationale behind the potential joint venture, “K” Line explained in a statement that LNG is expected to become an increasingly important alternative to heavy fuel oil due to its relatively low emissions of air polluting substances and greenhouse gases, and that this will enable ships to meet increasingly stringent international regulations on emissions.
   Studies have shown that compared to heavy fuel oil, the use of LNG can reduce emissions of sulfur oxides (SOx) and particulate matter (PM) by about 100 percent, nitrogen oxides (NOx) by as much as 80 percent, and carbon dioxide (CO2) by roughly 30 percent, “K” Line said.