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Press Releace
August 2, 2018
Signature on a Memorandum of Understanding for Joint Discussions on LNG Bunkering in the Setouchi and Kyushu Areas of Western Japan

 Kyushu Electric Power Co., Inc. has signed a memorandum of understanding with Saibu Gas Co., Ltd. (head office: Fukuoka; president: Toshio Sakemi), The Chugoku Electric Power Co., Inc. (head office: Hiroshima; president & CEO: Mareshige Shimizu), and Nippon Yusen Kabushiki Kaisha (head office: Tokyo; president: Tadaaki Naito), for joint discussions on the commercialization of a new business to supply liquefied natural gas (LNG) as a marine fuel to ships in the Setouchi and Kyushu areas of western Japan.

 The demand for LNG as a marine fuel, * a practical alternative to heavy fuel oil because of its relatively low emission of air polluting substances and greenhouse gases, is expected to increase after a global 0.5 percent sulphur cap** is introduced in 2020.
Therefore, Kyushu Electric Power Co., Inc. and the three companies have decided to examine the commercialization of an LNG bunkering*** business in the Setouchi and Kyushu areas of western Japan.

* Compared to heavy fuel oil, the use of LNG can reduce emissions of sulfur oxides (SOx) and particulate matter (PM) by approximately 100 percent, nitrogen oxides (NOx) by as much as 80 percent, and carbon dioxide (CO2) by approximately 30 percent.

** The International Maritime Organization (IMO) will implement a global 0.5 percent sulphur cap on marine fuel from January 1, 2020.

*** LNG bunkering
Providing LNG as a marine fuel to ships for its own consumption.

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