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Tue 13 Nov 2012, 07:41 GMT

Manufacturing firm orders LNG-fuelled ships


LNG-powered vessels commissioned for both environmental and economic reasons.

Manufacturing company Saudi Basic Industries Corporation (SABIC) has commissioned the construction of two seagoing gas tankers powered by liquefied natural gas (LNG) in anticipation of a European Union (EU) directive to drastically reduce sulphur emissions from vessels operating in the North Sea by 2015.

New EU rules require that the sulphur content in shipping fuels fall to 0.1% from 1% by 2015 in 'sulphur emission control areas' (SECAs) in the Baltic, North Sea and English Channel. In other EU waters, they will be limited to 0.5% sulphur by 2020, in line with global International Maritime Organization rules.

SABIC’s two gas carriers will be used to transport olefins from a major plant on Teesside, England, to ports in North-West Europe and Scandinavia. SABIC is the first chemical company in the world to order gas carriers running on LNG.

Commenting on the LNG-fuelled ships, Netherlands-based Michel Wintraecken [pictured], SABIC Manager Sourcing & Contracting, Supply Chain Chemicals Europe, said: "SABIC feels a strong sense of responsibility towards sustainability and the environment. This is why we have contracted Dutch company Anthony Veder for the use of two new LNG-powered gas carriers. We signed the basic agreement for the ships in April, construction has already started, and we will take delivery of them in 2014.”

Ships powered by LNG produce no sulphur emissions at all. In addition, carbon dioxide emissions are up to 20% less than with fuel oil, and NOx emissions are almost 90% less.

"We believe this initiative is the right thing for SABIC to do both from an environmental point of view as well as an economic point of view. The environmental benefits are profound and we also see it as a clear advantage that LNG is a bunker fuel which pricing is disconnected from crude oil," said Wintraecken.

Anthony Veder owns and operates a modern, high quality fleet of gas tankers for the transportation of petrochemicals, liquefied petroleum and natural gas, ammonia, and carbon dioxide. "In recent years, we have built up a good deal of experience with LNG-powered ships," said Jan Valkier, CEO of Anthony Veder. "Our fleet is being continuously modernized, renewed and adjusted to comply with regulations, customer requirements and the high standards upheld by the gas industry. We are very pleased to be working together with a company like SABIC in a proactive stance towards the sustainability of commercial shipping."

Image: Michel Wintraecken - SABIC Manager Sourcing & Contracting, Supply Chain Chemicals Europe

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