MOL and Idemitsu Sign Long-Term Charter for New LNG-Fueled VLCC

Mitsui O.S.K. Lines and Idemitsu Tanker: A Groundbreaking Partnership

In a significant move towards sustainable shipping, Mitsui O.S.K. Lines (MOL), under the leadership of President Tsuyoshi Hashimoto, has announced a long-term charter agreement with Idemitsu Tanker Co., Ltd., headed by President Tomio Inagaki. This agreement involves an innovative Large Crude Oil Carrier (Very Large Crude Carrier, VLCC) powered by LNG (Liquefied Natural Gas). The vessel, which marks the first VLCC LNG dual-fuel ship for domestic petroleum companies, is being constructed at Dalian Cosco KHI Ship Engineering Co., Ltd. (DACKS) in China and is expected to be completed in 2027.

A New Era for LNG Shipping

The new VLCC is part of MOL’s broader strategy to meet its ambitious environmental target set forth in the "MOL Group Environmental Vision 2.2", aimed at achieving net-zero emissions by 2050. Utilizing LNG fuel is anticipated to reduce greenhouse gas (GHG) emissions by approximately 25-30% compared to traditional fuel oils. MOL is committed to proactive measures towards decarbonization in the LNG shipping sector by aggressively adopting low-carbon fuels. The company has a target to operate 90 LNG/methanol-fueled vessels by 2030, alongside its ongoing efforts to launch around 40 LNG-fueled ships, including 6 VLCCs.

Technical Aspects of the New Vessel

The specifications of the new VLCC are impressive:

- Deadweight Tonnage: Approximately 309,000 tons
- Length Overall: About 339.50 meters
- Beam: Approximately 60.0 meters
- Expected Completion: 2027

These specifications highlight the large capacity and robust design of the vessel, tailored to meet the rigorous demands of transporting crude oil efficiently and with reduced environmental impact.

Collaborating for a Sustainable Future

Through this partnership with Idemitsu Tanker, MOL aims to be at the forefront of promoting LNG fuel adoption within the maritime industry. This initiative not only enhances cooperation between the two companies but also represents a crucial step in reducing the environmental footprint associated with oil transportation. Leadership figures from both companies, including MOL Executive Officer Hiroyuki Kubo and Idemitsu Tanker President Tomio Inagaki, affirm the importance of this collaboration in advancing LNG-powered shipping solutions to ensure a more sustainable future for the industry.

Conclusion

This long-term charter agreement is more than just a contract; it’s a shared commitment to embrace sustainability in shipping. The partnership serves as a beacon of hope and progress in the effort to create a cleaner maritime environment, positioning MOL and Idemitsu Tanker as leaders in the transition to greener shipping practices.