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Japanese trio take risk on LNG bunker tanker JV

11 Jul 2018

A decision by Sumitomo Corporation, Uyeno Transtech and Yokohama-Kawasaki International Port Corporation (YKIP) to introduce liquefied natural gas (LNG) bunkering in Tokyo Bay was made with some risk involved, says YKIP.

The trio, which started a joint feasibility on the subject in April, is now looking to form a joint venture to own and operate a LNG bunkering vessel in the Tokyo Bay area for commencing STS (Ship-to-Ship) bunkering operations of LNG by 2020.

The risk was justified by a subsidy from the Japanese government to support LNG bunkering in Tokyo Bay, it says.

“In pursuit of promoting cleaner marine energy for the future, with little forecast of local demand in sight, YKIP believes that this challenge requires to ally and justifies to receive the governmental aid from national fund,” explains YKIP.

“Through tremendous efforts made and progressive initiatives taken by the trio to achieve the prior investment for future such government decision was finally made.”

A separate group, consisting of Kawasaki Kisen Kaisha, Chubu Electric Power Co., Toyota Tsusho Corporation, and Nippon Yusen Kabushiki Kaisha, in early July placed an order for a LNG bunkering vessel from Kawasaki Heavy Industries through JV firm Central LNG Shipping Japan Corporation (CLS).

The CLS vessel is scheduled to be delivered around September to December 2020 and will be the first LNG bunkering vessel to be operated in Japan.

RelatedJapanese shipping, energy firms mull LNG bunkering business
Related: Japan: First LNG bunkering vessel ordered, to start ops in 2020
RelatedCentral LNG Marine Fuel Japan Corporation launched

Published: 12 July, 2018
 

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