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Australian shipbuilder Incat Tasmania Pty Ltd has launched the world’s first high-speed passenger ro-ro ship powered by liquefied natural gas (LNG).

The vessel has been moored alongside at the Incat shipyard wharf on Prince of Wales Bay to enable the final stage of construction and commissioning of machinery in the lead up to the sea trial period, anticipated to be January 2013.

The 99-metre LNG ship was contracted by South American company Buquebus in November 2010, for operation on their River Plate service between Buenos Aires, Argentina and Montevideo in Uruguay.

At the time the contract was announced, Incat Chairman Robert Clifford said "Incat is excited about this project as it represents a significant step in the global move for natural gas powered ships to replace those operated with less environmentally friendly fuels."

The vessel, named Hull 069, will be the eighth that Incat has built for Buquebus and their associated companies.

"It will be the largest catamaran they have operated and the fastest, environmentally cleanest, most efficient, high speed ferry in the world," Incat said in a statement.

With capacity for almost 1000 passengers plus around 140 cars, the vessel has a projected lightship speed of 53 knots, and an operating speed of 50 knots. Crossing the River Plate at high speed will allow the ferry service to compete with airline traffic between Uruguay and Argentina.

The passenger cabin will include tourist, business and first class seating, and over 1100 square metres of extensively fitted out duty free shop, the largest shopping area ever installed on a fast ferry.

The vessel will be the first installation of LNG-powered dual fuel engines on an Incat high-speed ferry, and the first high-speed craft built under the International Code of Safety for High-Speed Craft (HSC code) to be powered by gas turbines using LNG as the primary fuel and marine distillate for standby and ancillary use.