World Bunkering > News > Winter 2010 > Is gas the future?

Over the past year, there has been an increasing amount of discussion about the possibility of using LNG as a low-cost, low-emission alternative to residual fuel for powering ships. LNG is particularly well suited as fuel for use on regular liner services with short distances between calls, as the volume required for bunker space is much greater than that required for ships using fuel oil. For this reason, the Scandinavian region, particularly the Baltic Sea, has been seen as an ideal location for establishing the infrastructure for LNG-fuelled operations. In addition, many of the engine manufacturers and shipping companies interested in such developments are located in the region.

Sweden

The first steps are now being taken to establish an LNG bunker infrastructure. The Port of Gothenburg has been at the forefront of environmentally friendly port developments. In September 2010, it announced that it is to enter an agreement with LNG GOT, a collaboration between Swedish energy company Göteborg Energi and gas corporation Gasnor, to develop LNG infrastructure at the port. Port officials hope to begin delivering LNG as bunkers in 2013.

“Changing the fuel in large ships requires large investments. In addition to that, the vessels must be adapted to liquid natural gas, we will need a new infrastructure on land so that the gas can be delivered to ships. Our main objective is to construct a terminal which will be able to receive deliveries of liquefied natural gas for further delivery to bunker boats, which will supply the vessels,” LNG GOT said. “The vision is to be the natural choice of fuel supplier in Gothenburg. By choosing liquefied natural gas, we create a sustainable alternative fuel at sea.”

Finland

Viking Lines has announced that it intends to use LNG as fuel in a new cruiseship ordered from STX Finland to operate on the Turku- Stockholm route, although the final decision has yet to be taken.

According to reports in the local press, Finnish company Gasum plans to build a distribution terminal for LNG in Naantali (Nådendal), to serve the vessel. According to reports in the local press, the parties are currently negotiating the terms of delivery. The goal is to have the LNG teminal completed by summer 2013, when Viking Line’s newbuilding will come into service. However, both Viking and Gasum are reported as saying that the timetable is tight.

Norway

In Norway, Sea-Cargo, a liner company sailing between Norway and the EU, have ordered two ro-ro fuelled LNG ships for delivery in 2011. The company has signed a contract with Nordic LNG to provide fuel from the Skangass LNG facility at Risavika.

“Throughout the past few years, we, and our owners Seatrans, have expended considerable resources to realise the use of LNG as an energy source for our line vessels. LNG is clearly the green alternative of the future for the marine transport sector. It has been a challenging process, where it was important to get three issues in particular in place: class requirements (for equipping the ships), infrastructure (gas availability) and last but not least – a competitive price for gas compared with the current price of oil. The agreement with Nordic LNG has now put the last pieces in place: deliveries and competitive prices. Sea-Cargo is very proud of what has been achieved by this project – in 2011 we will start the world’s first ro-ro/ CONT-based line traffic concept with LNG as fuel,” said Ole Sævild, managing director of Sea-Cargo.

“We are very happy to have been awarded this contract in stiff competition with other suppliers. Sea-Cargo is one of the pioneers in the commercial use of LNG as fuel. In addition to considerable environmental savings, LNG is also competitive in terms of price. This project illustrates in practice that it is possible to comply with the environmental requirements imposed on the shipping industry and also maintain the competitive edge against established alternatives,” said Knut Arvid Fisketjøn of Nordic LNG.

OW Icebunker extends range

There have also been several new developments on the more conventional bunkering scene. As cruiseships, fishing vessels, and cargoships venture further north, specialist provider OW Icebunker has extended the range of its services available in Northern Norway. “OW Icebunker has one tanker operating in the Barents Sea and off the coast of Norway, and has access to the rest of OW Bunker’s logistics network of over 30 vessels to ensure that it can meet customers’ demands,” the company said. OW Icebunker can provide customers with products in port at Narvik, Hammersfest, Honnigsvåg and Kirkenes. It can supply all grades of fuel oil up to 380 cSt, MGO and LSFO.

Bergen Bunkers moves into Oslo

Norwegian bunker trader and supplier Bergen Bunkers established BB Oslo AS, an Oslo-based subsidiary in June this year. Three brokers are now working from the Lysaker office.

Bergen Tankers has taken delivery of two newbuilding tankers in the last year. Bergen-Tank was delivered in June 2010, while Oslo-Tank was delivered in November 2009. Both tankers were built in St Petersburg.