Page 11 - AsianOil Week 43

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This ship is being developed by a consortium that includes NYK, Kawasaki Kisen Kaisha (“K” Line), JERA – a joint venture between Tokyo Electric Power Co. (TEPCO) and Chubu Elec- tric Power – and Toyota Tsusho. The vessel is due to enter service in late 2020, and will have the capacity to store 1,500-1,600 tonnes of LNG, which is enough to fuel a round trip between North Asia and North America.
The general manager of JERA’s LNG bun- kering unit, Akiko Tanba, told the Japan Times that once the vessel enters service, Ise and Mikawa bays will be the only region in Japan that allows three types of LNG bun- kering – ship-to-ship, shore-to-ship and truck-to-ship.
The other vessel is being developed by a con- sortium led by Sumitomo. In addition, the Japa- nese Ministry of Land, Infrastructure, Transport and Tourism (MLIT) has put in an order for an LNG-powered working vessel, which is set to begin operations in March 2021.
A number of other initiatives are also under- way in the country as part of the bunkering push. JERA is upgrading its Kawagoe gas-fired power plant in Mie Prefecture to allow shore-to-ship bunkering from LNG tanks. And at Tomakomai in Hokkaido the use of a portable LNG tank is being considered for bunkering.
What next
Japanese efforts to establish more bunker- ing infrastructure are timely. Norway-based classification society DNV-GL estimates that 6-11% of the global shipping fleet is set to shift to LNG by 2025.
Meanwhile, Royal Dutch Shell estimates that if 10% of current marine fuel oil con- sumption is substituted with LNG, this will create additional LNG demand of 30mn tonnes per year (tpy).
There are certain obstacles standing in the way of more widespread adoption of LNG bun- kering, however. According to JERA’s Tanba, LNG-fuelled ships typically cost 20-30% more than conventional vessels, suggesting that the high investment cost may deter some ship-own- ers. Indeed, the Japanese government is having to subsidise projects in order to spur demand for LNG bunkering.
In the longer term, there are additional challenges as well. The IMO has set other guidelines, including a 50% cut in greenhouse gas (GHG) emissions from vessels by 2050. There are concerns that the impact of using LNG as fuel will only result in a more modest reduction in GHG emissions. In the longer run, shippers may have to look at alternatives such as hydrogen or biofuel.™
Week 43 30•October•2019 w w w . N E W S B A S E . c o m P11