Japan's MOL signs charter deal for LNG-fuelled bulk carrier

Japanese shipping company Mitsui O.S.K. Lines (MOL) on June 8 announced the signing of a charter agreement with utility Kansai Electric Power Co. (KEPCO) for a newbuilding dual-fuelled bulk carrier, which can run on marine fuel oil or LNG.

The vessel will be constructed by Oshima Shipbuilding Co. and is expected to be delivered in the second half of 2026.

The new vessel will be primarily engaged in overseas coal transportation for KEPCO's Maizuru power station. The company said that this agreement adds to an existing contract and supports MOL's commitment to sustainable practices.

MOL said that LNG as a fuel source could significantly reduce carbon dioxide emissions by approximately 25%, sulfur oxides emissions by 100%, and nitrogen oxides emissions by around 85% compared with conventional marine fuel.

MOL Group has set a target of achieving net-zero greenhouse gas emissions by 2050 and has already ordered and built LNG-fuelled vessels, including car carriers, bulk carriers, tankers, ferries, and a tugboat. The upcoming dual-fuelled bulk carrier will be MOL's 17th LNG-fuelled ocean-going vessel.