Uyeno Transtech Ltd., Sumitomo Corporation, and Yokohama-Kawasaki International Port Corporation (hereinafter collectively referred to as “the three companies”) have concluded a memorandum on conducting a joint study on Ship-To-Ship liquefied natural gas (LNG) bunkering in Tokyo Bay (the Joint Study).
LNG as ship fuel is notable for generating lower emissions of sulfur oxides (SOX), nitrogen oxides (NOX) and carbon dioxide (CO2) than the heavy fuel oil conventionally used as marine fuel oil. Expectations are high worldwide that it will serve as a more eco-friendly alternative fuel able to comply with tighter global cap on sulphur emissions from international shipping due to go into effect in 2020.
It is even forecast that about one-fourth of the world’s ship fuel use will be switched over to LNG by 2030, producing a global rise in the demand for LNG fuel. At the same time, inadequate LNG bunkering infrastructure is among the reasons that Japan and the rest of Asia lag far behind such leading regions as Europe and the US in widely adopting LNG as marine fuel.
In hoping to turn Tokyo Bay, a gateway to Asia for ships sailing in the Pacific Ocean, into a LNG bunkering hub, the three companies will jointly study the commercial feasibility of Ship-To-Ship LNG bunkering services using LNG bunkering vessels all the while remaining open to possible participation in such a business venture by LNG-related companies.
Press release: sumitomocorp.co.jp