MOL Sets Sights on Construction of LNG-fueled Tugboat
- 1st LNG Fueled Tugboat in Osaka Bay, Promoting "ISHIN NEXT" -

May 23, 2017

TOKYO-Mitsui O.S.K. Lines, Ltd. (MOL; President & CEO: Junichiro Ikeda) today announced the company's decision to build an LNG-fueled tugboat. The new tugboat will be built as the first LNG-fueled tugboat in Japan conforming to the IGF code (*1) issued in January of this year subject to be examined by Japan's Ministry of Land, Infrastructure, Transport and Tourism.

MOL will own the tugboat, slated for construction at Kanagawa Dockyard Co., Ltd. (President: Takehito Ikoma, headquarters: Hyogo-ku, Kobe). Yanmar Co., Ltd. (President: Takehito Yamaoka, headquarters: Kita-ku, Osaka) will supply LNG-fueled engines. Osaka Gas Co., Ltd. (President: Takehiro Honjo, headquarters: Chuo-ku, Osaka) will supply LNG fuel to the tugboat. Nihon Tug-Boat Co., Ltd. (President: Shigeshi Omori, headquarters: Chuo-ku, Kobe) will operate the tugboat.

The new tugboat will be deployed in Osaka Bay in April 2019. It will be equipped with high-performance dual fuel engines (*2) that allows high-speed operation and superior environmental performance, and will be the first LNG-fueled tugboat to escort large-scale freighters in Osaka Bay and the Seto Inland Sea. The development of this tugboat will also spur the initial development of an LNG fuel supply system for vessels in Osaka Bay.

The tugboat will be built as an element of "ISHIN NEXT - MOL SMART SHIP PROJECT" (*3), and knowledge and expertise gained through the tugboat's development and operation will be fed back to various types of LNG-fueled ships including the environment-friendly ferry (ISHIN-II) (*4). The construction of this tugboat also reflects MOL's proactive stance in promoting LNG fuel through technological development of LNG-fueled vessels (*5) and enhancement of safe operation. MOL continually strives to promote and expand its environment and emission-free businesses, seizing opportunities presented by efforts to reduce the environmental impact of the global shipping industry.

LNG-fueled tugboat

(*1) The International Code Of Safety For Ships Using Gases Or Other Low-Flash Point Fuels. The code stipulates safety requirements for vessels using gas and other low-ignition fuels, and was issued on January 1, 2017.

(*2) Dual fueled engines, which run on either A heavy oil or LNG

(*3) MOL's R& D project. For details, please refer to the press release on November 24, 2016: MOL Launches "ISHIN NEXT - MOL SMART SHIP PROJECT -.

(*4) The concept vessel of the environmental impact-reducing LNG-fueled ferry. For details, please refer to the press release on December 2, 2009: MOL Completes Concept for Series of New-Generation Vessels.

Artist's conception of the environment-friendly ferry

(*5) MOL established the Bunker Business Office to accelerate its initiatives on LNG and other alternative vessel fuels, and is taking an integrated approach to entering the business of supplying LNG and other fuels. Please refer to the press release on February 24, 2017: MOL to Restructure Organization.