MOL and JERA Ink Long-Term Charter Agreement for New LNG Carrier

On May 22, 2024, Mitsui O.S.K. Lines, Ltd. (MOL; President & CEO: Takeshi Hashimoto) disclosed the execution of a prolonged charter agreement for a newly constructed LNG carrier with a vessel operation management company financed by JERA Co., Inc. (JERA).

This marks the seventh contract with JERA, following the signing of a time charter contract for the sixth LNG carrier. The vessel will be constructed at SAMSUNG HEAVY INDUSTRIES CO., LTD's Geoje Shipyard in South Korea and is slated for delivery in 2026. Managed by MOL, it will transport LNG for JERA. Equipped with the state-of-the-art MAN Energy Solutions engine (ME-GA), the new vessel promises improved fuel consumption efficiency and enhanced environmental friendliness compared to conventional LNG carriers.

Through this long-term charter agreement, MOL will play a role in ensuring a steady supply of LNG in collaboration with JERA.

The vessel, constructed with precision at SAMSUNG HEAVY INDUSTRIES, boasts impressive main dimensions with a length overall (LOA) of 290 meters and a breadth of 45.8 meters. Featuring a tank type of 174,000 cubic meters membrane, it is designed to efficiently store and transport LNG. Its propulsion is powered by the cutting-edge ME-GA main engine, ensuring optimal fuel consumption efficiency and performance. Scheduled for delivery in 2026, this state-of-the-art vessel represents a significant advancement in maritime technology, poised to contribute to the efficient and reliable transportation of LNG across global waters.

JERA Co., Inc., headquartered at 2-5-1 Nihonbashi, Chuo-ku, Tokyo, is led by Yukio Kani, Chairman of the Board, Global CEO, and Hisahide Okuda, President, Director, CEO, and COO. Established on April 30, 2015, as a joint venture and comprehensive alliance between the former Tokyo Electric Power Company, Inc., and Chubu Electric Power Co., Inc., JERA amalgamates the entire supply chain from fuel upstream operations and procurement to power generation and sales. Following the consolidation of all existing thermal power generation enterprises in April 2019, JERA has emerged as a leading energy company in Japan in terms of power generation capacity and ranks among the highest globally in fuel transaction volume. In pursuit of decarbonization over the medium and long term while ensuring a stable electricity supply, JERA aims to strengthen its operations in thermal power generation while establishing a clean energy supply platform that harnesses digital technology to integrate renewable energy and low greenhouse gas thermal power. By offering Asia and the world a platform that achieves supply stability and decarbonization, JERA aspires to contribute to the sustainable growth and development of the world while maximizing its corporate value.

MOL views the expansion of its LNG fleet and the establishment of long-term charter contracts, including this particular project, as a means to build a robust and consistent profit stream within its business portfolio transformation outlined in its "BLUE ACTION 2035" management plan. Recognized for its lower greenhouse gas (GHG) emissions during combustion compared to heavy oil, LNG represents a low-carbon energy source. This strategic initiative aligns seamlessly with the objectives outlined in the "MOL Group Environmental Vision 2.2," which seeks to attain net zero greenhouse gas (GHG) emissions by 2050. Additionally, it supports the overarching goal of "expanding the low-carbon/decarbonized business by leveraging the group's collective strength."

Drawing on its extensive experience and expertise as one of the globe's largest shipping firms, MOL intends to cultivate diverse social infrastructure businesses, technologies, and services, with a primary focus on ocean transport. This strategic endeavor is geared towards addressing the diverse needs of its broad customer base across the group. MOL's overarching vision is to evolve into a global social infrastructure company, a robust and adaptable corporate entity committed to enhancing people's daily lives through the vast expanses of the world's oceans. Ultimately, it aspires to foster a prosperous future while generating novel value for all stakeholders involved.