Tue 17 Nov 2009 07:42

Multigas carrier to supply LNG to bunker market


Specialized gas carrier will be used to distribute LNG to end users in the marine fuel market.



The I.M. Skaugen Group (IMSK) has this week named the first ship in its new series of Multigas carriers, the Norgas Innovation, which the company says will also be used to supply liquefied natural gas (LNG) to end users in the marine fuel market, where LNG will be used to power ships.

The group's first Multigas vessel will initially enter the fleet of Norgas Carriers, the I.M. Skaugen company involved in the maritime transportation of petrochemical gases and LPG. However, in the second half of 2010, the ship will be dedicated to Nordic LNG and their Mini LNG business in Scandinavia where end users in the marine fuels market will form part of the company's distribution network.

"Environmental benefits would also be gained in maritime bunker markets. As legislation covering the shipping industry becomes tighter, emissions of sulphur dioxide (SOx) and nitrogen oxides (NOx) must be reduced and, eventually, this will also apply to CO2," Skaugen said in a statement.

"The long term future of heavy fuel oil as bunkers is questionable, both in terms of dependency on oil and not at least with regards to emissions. Natural gas in contrast gives a far more environmentally friendly combustion and in addition there appear to be greater reserves available than oil. Thus natural gas in liquid form (LNG) as marine bunkers has the potential to be the solution for the shipping industry to cope with its emission challenges in the years to come."

"By running their vessels on LNG ship owners will be able to solve their emission problems at the source and avoid the need for auxiliary equipment such as scrubbers and selective catalytic reduction (SCR) units," Skaugen added.

In regards to infrastructure, Skaugen said "To make LNG a real alternative to traditional fuel oil and diesel oil bunkers, a suitable infrastructure has to be developed. This means that LNG has to be shipped from either LNG liquefaction plants or traditional LNG import terminals to smaller regional hubs. There, LNG-fueled ships can bunker either directly or from smaller LNG bunker vessels serving the hub. Our Multigas carriers are ideally suited to this 'breaking-bulk' LNG depot supply activity."

During a year in LNG trade, Skaugen says Norgas Innovation would contribute a net reduction of CO2 emissions with more than 300.000 tons of CO2 - by providing the LNG that allows customers to switch to natural gas. This means during her life time - Norgas Innovation would reduce emissions by more than 7 million tonnes of CO2.

The flexibility inherent in the cargo-handling system enables the Multigas ships to move between the LNG, LPG and petrochemical gas trades as commercial circumstances dictate, However, it is the ability to handle LNG at cryogenic temperatures which Skaugen claims makes these ships particularly notable. Skaugen says is poised to play a pioneering role in the local and regional distribution of LNG at a time when the global LNG trade is growing strongly and the natural gas supply chain is being extended to provide remote communities with access to this clean-burning fossil fuel for the first time.

"Interest in both the Mini LNG concept and our Multigas newbuilding programme has grown strongly in recent years and we have no doubt that these vessels have a bright future in serving regional LNG distribution markets."

The vessel is scheduled to be delivered to its owners, Singapore based Singco Gas Pte Ltd, a 50/50 joint venture between GATX Corporation and I.M. Skaugen Marine Services Pte Ltd, a 100% owned subsidiary of Norway-based I.M. Skaugen SE by end of this year/early January 2010. Flying a Singaporean flag, the vessel will be operated by Norgas Carriers AS.


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