Japan’s Mol adds to LNG fleet for Jera

Japanese shipping firm Mitsui OSK Lines (Mol) is to launch a new LNG carrier in 2026, the seventh vessel to be supplied under an unspecified time charter agreement with the country's largest power producer by capacity Jera.

The 174,000m³ membrane-type vessel is being built by South Korean shipbuilder Samsung Heavy Industries at its Geoje shipyard. It will be installed with a dual-fuel engine that can run on low-sulphur fuel oil or boil-off gas stored in the ship's cargo tank, Mol said.

LNG is dominant in Jera's power portfolio, with its gas-fired output accounting for 75pc of its power generation in the April 2023-March 2024 fiscal year. The company consumed around 23mn t of LNG during 2023-24, which accounted for 35pc of Japan's LNG imports of 64.9mn t.

Jera is planning to maintain its LNG handling volumes at no less than 35mn t/yr until 2035-36, so to ensure power security in Japan through more flexible operations. It is also looking to further promote LNG along with renewable electricity in Asian countries, while helping to reduce their dependence on coal- and oil-fired power generation.

By Motoko Hasegawa