Osaka Gas strengthens footold in LNG bunkering sector

Osaka Gas has made history by becoming the first gas utility company in Japan to offer shore-to-ship liquefied natural gas (LNG) bunkering services. The inaugural delivery took place on April 21, 2025, at the Osaka Gas Senboku LNG terminal in Takaishi, Osaka. This significant development aims to enhance fuel delivery capabilities in Japan, addressing the growing demand for LNG as a marine fuel.

Inaugural Delivery Marks a New Era

The first vessel to receive LNG from Osaka Gas was the 210,321-ton Capesize bulker, Verde Heraldo, operated by Mitsui O.S.K. Lines (MOL). This ship, which was recently constructed by Imabari Shipbuilding, is set to transport raw materials for JFE Steel. The vessel was officially handed over on April 18, 2025, just days before the historic bunkering service commenced.

Osaka Gas’s new shore-to-ship bunkering service complements its existing truck-to-ship LNG bunkering operations, which have been in place since 2019. The company aims to significantly boost its fuel delivery capabilities to meet the increasing demand for LNG in maritime operations. This initiative is particularly crucial given the current scarcity of facilities in Japan that can supply LNG to vessels.

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In addition to shore-to-ship services, Osaka Gas is planning to introduce ship-to-ship LNG bunkering using dedicated bunker vessels, with an expected launch in fiscal year 2026. This expansion is part of the company’s strategy to provide a stable and flexible supply of clean energy to an increasing number of ships utilizing LNG.

Government Support and Market Growth

Despite a reported decline in Japan’s LNG imports to a 14-year low in 2023, the country remains committed to LNG as a marine fuel. According to market research by IMARC Group, the Japanese LNG bunkering market was valued at $184.4 million last year and is projected to grow to $311.3 million by 2033. This growth is supported by government policies, subsidies, and initiatives aimed at enhancing the necessary infrastructure.

One notable initiative includes plans to make the Port of Yokohama, Japan’s second-largest container port, carbon-neutral by exploring LNG bunkering services. In May 2021, a significant agreement was reached between NYK Line, NYK Cruises, Ecobunker Shipping, and Yokohama City to supply LNG at the port on a larger scale.

Additionally, in April 2024, Japan’s first dual-fuel LNG bunkering vessel, KEYS Azalea, successfully completed its inaugural operation in Western Japan, supplying LNG to the pure car and truck carrier Daisy Leader at the Port of Hiroshima. These developments highlight Japan’s commitment to advancing its LNG infrastructure and promoting cleaner marine fuel options.