Japan’s Osaka Gas launches STS LNG bunkering ops

Japan’s city gas supplier and LNG importer, Osaka Gas, has launched ship-to-ship LNG bunkering operations with the newbuild bunkering vessel Seto Azure.

Osaka Gas said in a recent statement that the 3,610-cbm LNG bunkering vessel delivered LNG fuel to a dual-fuel Capesize bulk carrier at JFE Steel Corporation’s West Japan Works in Fukuyama District, Hiroshima, on April 21.

With this development, Osaka Gas has become a supplier for marine LNG fuel with all three primary supply methods, ship-to-ship, truck-to-ship, and port-to-ship, it said.

In March, the company announced that it plans to start STS LNG bunkering with Seto Azure after Shitanoe Shipbuilding held a naming ceremony for the 82.29-meter-long vessel.

Shitanoe built the vessel for Osaka Bay LNG Shipping, in which Osaka Gas International Transport, a wholly-owned subsidiary of Osaka Gas, has invested.

Other partners include NS United Coastal Tanker Kaisha (NSUT) and Kobe-Osaka International Port Corporation (HPC).

Osaka Gas announced this joint venture back in 2023.

The vessel features a type C independent tank and LNG/fuel oil dual-fuel engine.

Osaka Gas said the STS method, where an LNG bunkering vessel directly supplies fuel to ships at berth or anchorage, offers a high degree of operational flexibility.

It also enhances operational redundancy and supply resilience by enabling LNG loading at Osaka Gas’ Senboku LNG terminal in Osaka and Himeji LNG terminal in Hyogo, it said.

Osaka Gas noted that an increasing number of LNG-fueled vessels have come into operation in recent years, driven by the global trend of marine fuel decarbonization and the target set by the IMO to reduce greenhouse gas emissions.

The company said that LNG-fueled vessels can “significantly” reduce carbon dioxide emissions compared to the traditional use of heavy oil as marine fuel.

However, LNG bunkering infrastructure has remained limited in Japan, it said.

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