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Eneos Globe, a Japanese LPG importer, recently unveiled its first very large gas carrier (VLGC) equipped with a dual-fuel LPG engine. Last week, the company introduced the 86,000m³ Globe Frontier, constructed by South Korean shipbuilder, Hyundai Heavy Industries. This new vessel is expected to commence its commercial services on 27 October, though Eneos Globe has chosen not to reveal specifics about the contract, including details about the operator or the charter deal duration.

What sets this VLGC apart is its ability to utilize LPG from a cargo tank as bunker fuel, given the connection between the LPG fuel tank and the cargo tank. In a notable feature, the ship is also designed to transport liquified ammonia concurrently. Eneos Globe confirmed this is their inaugural VLGC with the capability to use LPG as bunker fuel while also transporting liquified ammonia.

Data from the Japan LP Gas Association indicates that from January to August, Japan's LPG consumption stood at 7.9 million tonnes, marking a reduction of 2.9% when compared to the same timeframe in 2022. The country's trade and industry ministry (Meti) foresees this decline intensifying, attributing it to technological innovations in high-efficiency equipment that can reduce consumption levels.

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However, on the horizon, Japan anticipates a surge in ammonia demand for fuel. Projections estimate a rise to 3 million tonnes annually by 2030, with an exponential leap to 30 million tonnes by 2050. The nation has outlined objectives to incorporate 20% ammonia co-firing in local coal-powered plants by 2030, with aspirations to exceed 50% by 2050. These targets align with Japan's broader aim to achieve decarbonization by the mid-century.

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According to the article by Procurement Resource, Eneos Globe, a Japanese company, recently commissioned its inaugural VLGC with a dual-fuel LPG engine, built by Hyundai Heavy Industries. Set to start operations on 27 October, this vessel can use LPG as fuel and transport liquified ammonia. Although Japan's LPG consumption decreased by 2.9% from January to August compared to 2022, the country projects a significant rise in ammonia demand, aligning with its decarbonization goals for 2050.