Japanese duo to study ammonia carriers and transshipment terminals

Japanese petroleum company Idemitsu Kosan and conglomerate Mitsubishi Corporation will conduct a joint study on efficient operation of ammonia carriers and transshipment terminals.

PHOTO: A chart of Idemitsu Kosan and Mitsubishi’s ammonia supply chain. Mitsubishi Corporation

A transshipment terminal is a facility where cargo is transferred from one vessel to another, typically as part of a longer voyage.

The project will also explore developing a supply chain for imported ammonia and focus on securing ammonia offtake.

Idemitsu has established an ammonia import terminal at its Tokuyama Complex in Yamaguchi, aiming to supply over 1 million mt of ammonia as fuel and raw materials by 2030, in collaboration with local companies. However, it has not disclosed the volume of fuel that will be earmarked for shipping.

Additionally, Idemitsu and Mitsubishi plan to participate in ExxonMobil's hydrogen and ammonia production project in Baytown, Texas, which is expected to start by 2029.

This project will produce about 900,000 mt/yr of hydrogen and over 1 million mt/yr of ammonia, with a final investment decision planned for 2025, pending regulatory approvals. The final investment decision for the project is expected in 2025.

By Tuhin Roy

Please get in touch with comments or additional info to news@engine.online