MOL inks LNG transport deal; new ship in the works

MAY 16, 2013—Japan’s Mitsui O.S.K. Lines, Ltd. recently signed a 12-year contract to transport Liquefied Natural Gas (LNG) for Osaka Gas Co., Ltd.  and Kyushu Electric Power Co., Ltd. As MOL has concluded the contract with Osaka Gas and Kyushu Electric Power, it will soon sign a contract with Japanese shipbuilder Mitsubishi Heavy Industries Co., Ltd. (MHI) for the construction of a 155,000 cm³ LNG carrier.

Under the long-term contract, which starts in 2020, MOL will transport 800,000 tons of LNG for Osaka Gas and 300,000 tons per year for Kyushu Electric Power.

The LNG carrier will be used to transport LNG purchased by Osaka Gas and Kyushu Electric Power from the Australia Ichthys LNG project. This contract marks the first time that an LNG carrier wholly owned by a Japanese shipping company will serve on a joint transport service for electric power and gas companies in Japan.

LNG has drawn attention as an environmentally friendly energy resource. New large-scale projects are being planned in North America and East Africa, setting the stage for increased demand for LNG transport. MOL is the world’s largest LNG carrier owner and management company.