Asia/Pacific News
Japanese Government Outlines Development Plan for Yokohama LNG Bunkering Hub
Japan's Ministry of Land, Infrastructure, Transport and Tourism (MLIT) Monday released the results of a feasibility study for liquefied natural gas (LNG) bunkering at the Port of Yokohama, which highlighted the advantages of utilising the port as a regional LNG bunkering hub and a roadmap for its development.
"Because the decision has been made by IMO (International Maritime Organization) that the international regulations on ship emissions will start strengthening in 2020, it is expected that the number of LNG fuelled ships with clean exhaust gas will rise. In order to respond to the spread of LNG fuelled ships, it is important to establish LNG bunkering Hubs at the ports in Japan and enhance their competitiveness," explained the ministry.
Yokohama's location on the Pacific side of the country enables it to serve as the first or last bunkering base in the Asian side of the Trance Pacific route, notes MLIT, adding that the launch of an LNG-fuelled tugboat Sakigake in August 2015 has provided local related business operators and administrative agencies with LNG bunkering experience.
Further, MLIT says Yokahama's numerous LNG bases next to the port will enable LNG bunkering supply costs to be reduced through the use of these existing facilities.
The study outlines a road map for the development of LNG bunkering at Yokohama, which includes three phases.
Phase I sets out the optimisations of existing truck to ship LNG bunkering operations at the port, a milestone that is noted to have been realised in November 2016.
Phase II will see the introduction of ship to ship LNG bunkering, utilising the Sodegaura LNG terminal in Tokyo Bay to supply bunkering ships.
Under Phase III, bunkering operations at the port will be strengthened through the introduction of a new LNG supply system and second bunkering ship at the port.
"It is necessary to increase the volume of demand around 100,000 tonne to 150,000 tonne per year to secure the business profitability in Phase II. It requires many efforts towards the realisation of LNG Bunkering Hub due to the limitation of the demand at the beginning of Phase II," said MLIT.
MILT notes that the study was completed through a steering committee that it appointed in June, which includes government agencies, NYK Line, and Tokyo Gas Co., Ltd. (Tokyo Gas), among others.
"MLIT continue to work together with related government agencies and related private enterprises to promote LNG as a marine fuel," the ministry confirmed in its release on Monday.
