Asia/Pacific News
Japan Wants Ships to Switch to LNG
Japan is said to be planning to get ships to use liquefied natural gas (LNG) to help cut carbon emissions and diversify energy sources in the freight sector for security reasons, Reuters reports.
A discussion on Japan's draft energy policy report at the trade ministry last week said there is was a need to have a greater variety of fuels to transport cargo, noting the growing international use of LNG and compressed natural gas (CNG) in the sector.
"By diversifying fuel in the distribution sector, we aim to improve our ability to respond in the event of an energy crisis," said Ryo Minami, the ministry's director of oil and gas.
"If oil supplies are halted, distribution will come to a stop," he added.
Gas is reported to have taken more importance in the country since the 2011 Fukushima disaster led to the shutdown of Japan's nuclear power sector, and now accounts for more than 40 percent of electricity generation in the country.
Likewise, LNG imports to Japan hit a record high of 89 million tonnes in the year to March, making Japan the the world's biggest importer of LNG.
However, gas has less than 1 percent of the mix in transport in Japan, compared to an Organisation for Economic Co-operation and Development (OECD) average of about 2 percent.
Yasushi Kimura, head of Japan's oil refiners' association, says energy use should be left to market forces and consumer preference.
"Creating new infrastructure would be a big burden on the citizens," said Kimura.
Still, LNG is said to be increasingly being used in Japan for trains and shipping.
In March, Boston Consulting Group (BCG) said LNG is likely to become the marine fuel of the future, commanding up to 27 percent of the bunker market by 2025.
