New chapter for Osaka Gas as it strengthens foothold in LNG bunkering sector

April 22, 2025, by Sara Kosmajac

Japan’s gas company Osaka Gas is set to offer shore-to-ship LNG bunkering services, becoming the ‘first’ gas utility company in the country to fuel vessels powered by liquefied natural gas directly from its own terminal infrastructure.

According to the company, the inaugural delivery of this alternative fuel was wrapped up on April 21, 2025, at the Osaka Gas Senboku LNG terminal in the city of Takaishi, Osaka prefecture.

The ship that marked the commencement of the service was the 210,321-ton Capesize bulker Verde Heraldo, which is operated by Tokyo-headquartered shipping major Mitsui O.S.K. Lines (MOL).

The newbuilding, which was constructed by compatriot Imabari Shipbuilding and is scheduled to serve JFE Steel by transporting raw materials for steel production, was christened and handed over on April 18 this year.

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As informed, with the launch of shore-to-ship bunkering, coupled with the truck-to-ship LNG bunkering service (available since 2019), Osaka Gas expects to ‘boost’ its fuel delivery capabilities, with the all-embracing goal of addressing the current scarcity of facilities in Japan that can supply liquefied natural gas to vessels.

To provide a “stable and flexible” supply of this clean energy source to a growing number of ships that use it for their operations, Osaka Gas reportedly has plans underway to provide ship-to-ship LNG bunkering as well, using dedicated bunker vessels. This service is anticipated to begin in fiscal year 2026.

Despite Japan’s liquefied natural gas imports reportedly falling to a 14-year low in 2023, the country has been doubling down on LNG as a marine fuel. Per data from market research company IMARC Group, the size of the Japanese LNG bunkering market was valued at $184.4 million last year, with the report’s estimates showing it could jump to $311.3 million by 2033.

The country’s government is also understood to have supported this sector through policies, subsidies and a range of initiatives aimed at improving the needed infrastructure.

For instance, the government plans to make the Port of Yokohama—said to be Japan’s second-largest container port—carbon-neutral by exploring LNG bunkering services there. To remind, in May 2021, in line with this vision, NYK Line, NYK Cruises, Ecobunker Shipping, and Yokohama City inked a deal to supply liquefied natural gas at the port on a ‘greater’ scale.

Concerning other notable developments within this realm, in April 2024, Japan’s ‘first-ever’ dual-fuel LNG bunkering vessel dubbed the KEYS Azalea wrapped up its inaugural bunkering operation in Western Japan. The ship supplied the pure car and truck carrier (PCTC) Daisy Leader at the Port of Hiroshima.