MOL inks charter deal with Tokyo Gas for LNG carrier

Japanese shipping major Mitsui O.S.K. Lines (MOL) has signed a long-term charter contract for a newbuilding LNG carrier with Tokyo LNG Tanker (TLT), a subsidiary of compatriot gas supplier Tokyo Gas.

As explained, the newbuild vessel will be built at the Geoje Shipyard of Hanwha Ocean. The 174,000-cbm ship will be equipped with the MAN Energy Solutions (MAN ES) engine (ME-GA), to improve fuel consumption efficiency, with specifications that enhance its environment friendliness, compared to conventional LNG carriers.

This is the eighth contract, following a time charter contract for seven LNG carriers that were signed for TLT. The LNG carrier is slated for delivery in 2026.

Through this long-term charter contract, MOL plans to contribute to the realization of a stable supply of LNG in partnership with Tokyo Gas. Recently, MOL held a naming ceremony to serve GAIL (India), the largest natural gas supplier under India’s Ministry of Petroleum and Natural Gas.

Tokyo Gas began importing carbon-neutral LNG in 2019 and became the first company in Japan to supply it to customers as carbon-neutral city gas.

According to Tokyo Gas, this is a type of LNG that offsets greenhouse gases, which are generated in the process, from extraction to the burning of natural gas, and that carries a carbon credit (carbon offsetting). Thus, it is deemed to be carbon neutral on a global scale even when burned.