Fri 24 Mar 2017 11:23

Unioil reaches 18-month milestone as LNG bunker supplier


Danish firm focusing on developing its LNG bunker supply business in Europe.



Offshore bunker specialist Unioil Supply A/S (Unioil) has this month reached a new milestone in its development, as it has now been operating for 18 months as a supplier of liquefied natural gas (LNG) to ships.

In September 2015, when Unioil carried out its first LNG bunker delivery in Denmark, at the Port of Esbjerg, three trucks were loaded with around 120 cubic metres of LNG product from Rotterdam and delivered to an LNG-diesel dual-fuel platform supply vessel at the Danish port.

Since then, the company has mainly been supplying LNG in northern Europe - it has gone on to supply LNG in Amsterdam, and has received enquiries to perform deliveries in several European countries, including Germany, Poland and Scotland, Jesper Sander, Sales Director at Unioil Supply, told Bunker Index.

Unioil is now offering LNG bunker deliveries at several European ports by truck, in batches of approximately 20 to 100 metric tonnes.

In Germany it is only be possible to store up to 18.5 metric tonnes of LNG in each truck. Outside Germany, 22 metric tonnes can be carried, the Danish firm explained, whilst adding that the pumping rate of the trucks is around 30 to 40 metric tonnes per hour.

"We have permits to supply in major ports [in Europe], as well as a few minor ports. As LNG bunkers is still not as demanded as other bunker products, it will be from case to case. However, the ports we are in contact with are very interested in LNG bunkers," Unioil said.

Product is currently sourced from the Amsterdam-Rotterdam-Antwerp (ARA) region, but once the new LNG liquefaction plant in the port of Frederikshavn - with on-site storage tanks - is completed, the company will begin sourcing LNG from Denmark.

Bunker Holding, the owner of Unioil, announced a year ago that it planned to build an LNG production facility with Unioil as its commercial arm. Denmark's Nature Energy would be responsible for supplying biogas to the plant, whilst Kosan Crisplant - a leading supplier of equipment for infrastructure and facilities for the production and handling of gas - and the Port of Frederikshavn are also partners in the project.

With approximately 100,000 ships travelling through the straits near Skagen every year, Unioil will be looking to push on commercially with the launch of the new strategically located facility in Frederikshavn.

"With the new liquefaction plant, Unioil Supply will be more flexible in terms of sourcing and offering LNG to the benefit of the customers," Unioil said.

On the issue of quality and safety management, the company explained: "Unioil Supply operates based on a quality management system that meets requirements of the ISO 9001:2015 international standard and which is certified by DNV GL."

"As a first mover in LNG bunkering, Unioil Supply is already experienced in coordinating and supplying LNG as bunkers, including the handling of safety procedures as well as taking care of the necessary and often very complex permits required by the local authorities," Unioil added.

"We see ourselves as market leaders within offering and handling LNG as bunkers to a wide range of clients operating in segments such as offshore, ferry and bulk carriers. With a worldwide sulphur cap of max 0.5 percent coming up in 2020 and ECA zones being max 0.1 percent, we believe that LNG as bunkers will be a good alternative to regular bunker fuel for shipping," Sander remarked.