Mitsui O.S.K.Lines: MOL Group’s Phoenix Tankers Signs Deal for Construction of LPG Fuelled VLGCs for LPG/Ammonia Transport

Mitsui O.S.K. Lines, Ltd. (MOL; President & CEO: Takeshi Hashimoto) today announced that its group company Phoenix Tankers Pte. Ltd. (Managing Director: Daisuke Watanabe; Headquarters: Singapore) signed a deal with Namura Shipbuilding Co., Ltd. (President: Kensuke Namura; Headquarters: Nishi-ku, Osaka) for construction of two very large gas carriers (VLGCs) to transport liquefied petroleum gas (LPG) and ammonia.

Namura Shipbuilding will construct the two vessels at its Imari Shipyard, under a technical tie-up with Mitsubishi Shipbuilding Co., Ltd. (President: Toru Kitamura; Headquarters: Yokohama-shi, Kanagawa Prefecture). The vessels, which can also run on LPG fuel, are slated for delivery in succession after 2023.

LPG, as fuel, can reduce CO2 emissions by about 20%, and SOx, PM, and so on by about 90% in comparison with fuel oil. The new carriers are designed to maximize fuel efficiency, and are cutting-edge environmental-friendly vessels in conformity with EEDI Phase 3 which will be applicable for VLGCs contracted after 2022.

Ammonia is drawing attention as a next-generation clean fuel that does not emit carbon dioxide when burned, and as “hydrogen carrier” that can be used to transport hydrogen. The newly ordered vessels are also designed to transport ammonia, and are presently the world’s largest-scale ammonia carriers. Furthermore, the vessels will be built with an eye toward conversion to ammonia fuelled in the future because LPG and ammonia fuels have similar characteristics.

Addressing environmental issues in line with MOL Group Environmental Vision 2.1, the MOL Group implements ongoing group-wide efforts to achieve sustainable net zero GHG emissions, and contributes to the realization of a low-carbon society.