Shippingtelegraph: Japanese NYK and MOL agree ammonia carrier charters with JERA

The Japanese shipping group Mitsui O.S.K. Lines (MOL) has signed two heads of agreements with compatriot JERA, a power generation company, for a time charter contract covering two very large gas carriers (VLGCs) designed for ammonia transport.

Under this agreement, the vessels will transport low-carbon ammonia produced at JERA-invested Blue Point Complex in Louisiana, U.S., to JERA’s Hekinan Thermal Power Station in Hekinan City, Aichi Prefecture.

Since November 2022, MOL has held ongoing discussions with JERA on collaboration in fuel ammonia transport.

This agreement builds upon those discussions and seeks to establish a commercial-scale low-carbon ammonia value chain.

Furthermore, NYK Bulkship (Asia) Pte. Ltd., a member of the Japanese NYK Group located in Singapore, has also signed two heads of agreements with JERA, each for a time-charter contract covering an ammonia carrier.

Under these agreements, both parties will advance plans to transport low-carbon ammonia produced at JERA’s Blue Point Project in the U.S. state of Louisiana to JERA’s Hekinan Thermal Power Station in Hekinan City, Aichi Prefecture, Japan.

This initiative is expected to mark the first commercial shipment of fuel ammonia to Japan.

The NYK Group has been collaborating with JERA to explore the safe transportation of fuel ammonia by large vessels to its Hekinan Thermal Power Station.