Japanese Companies Set Up Ship-to-Ship LNG Bunkering Business in Japan

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A group of Japanese companies including shipping companies NYK and K-Line are teaming up to launch a new LNG bunkering business in Japan.

With the new business, the four companies, which include Chubu Electric Power and Toyota Tsusho in addition to NYK and K-Line, are seeking to offer commercial ship-to-ship LNG bunkering services in the Chubu region of Japan.

The companies have established two joint ventures to run the LNG bunkering business and ownership of the LNG bunkering vessel.

“LNG is expected to become an important alternative to heavy fuel oil due to its low emission rate of air polluting substances and greenhouse gases, which will enable ships to meet increasingly stringent international regulations on emissions,” the partners said in a joint statement, referring to the IMO’s mandatory low sulphur fuel regulations entering into effect on January 1, 2020.