Japan's Osaka Gas set to start LNG bunkering in Osaka Bay, Seto Inland Sea

Japanese gas supplier Osaka Gas has launched a joint venture business focused on ship-to-ship (STS) LNG bunkering in the Osaka Bay and Seto Inland Sea regions in Japan.

PHOTO: A graphic representation of an LNG Tanker. Getty Images

The joint venture, Osaka Bay LNG Shipping, plans to start operations in the fiscal year 2026, with its 1,500 mt LNG bunkering vessel.

LNG has become widely popular among shipowners. The global LNG fleet is currently made up of 399 vessels, with another 145 expected to join this year, according to classification society DNV data.

LNG can curb carbon dioxide emissions by about a quarter compared to conventional bunker fuels. But its methane emissions can be 36 times more potent as a GHG compared to carbon dioxide over a century, according to a World Bank study.

The Osaka Bay LNG JV, which includes Osaka's International Transport unit, NS United Coastal Tanker Kaisha (NSUT) and Kobe-Osaka International Port Corp, will lead the construction of the bunker vessel.

Coastal LNG vessel operator NSUT will manage vessel operations, while LNG will be loaded from Osaka Gas LNG terminals.

By Debarati Bhattacharjee

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