CRYO Shipping Plans LNG Bunkering for Northern Norway

| Norway, Bergen
Illustration CRYO LNG tanker

Illustration CRYO LNG tanker

Bergen based Norwegian shipping company, CRYO Shipping AS, plans to establish seaborne LNG transportation services in northern Norway. Once implemented, the company will be the first to offer competitive and sustainable LNG infrastructure solutions in the northernmost counties in Norway.

Distribution of LNG in the counties in Norway, Nordland, Troms and Finnmark is currently carried out solely by land transport, i.e. the delivery of small unit volumes with road tanker and tank container. This entails expensive logistics with heavy loads on roads, environment and increased risks of road traffic safety. Seaborne delivery will enable industry and natural gas-powered ships in this northern part of Norway to finally have LNG available as a cost-effective, environmentally-friendly fuel.

Flexible, efficient and environmentally friendly transport solutions that accelerate the green shift have high priority for Norwegian authorities, and it is important to ensure short-sea shipping is competitive in order to increase freight carried at sea. Norwegian Coastal Administration has established a grant scheme which aims to support more cargo being moved by sea instead of road.

The Norwegian Coastal Administration has concluded that CRYO Shipping’s proposal will have a great value for both environment and society, and CRYO Shipping has been awarded EUR 1 million (USD 1.2 m) in grants to establish the LNG trade lane.

CRYO Shipping Nicholai H. Olsen and Dag Lilletvedt

CRYO Shipping Nicholai H. Olsen and Dag Lilletvedt

Acknowledging the funding, Nicholai H. Olsen, Managing Director of CRYO Shipping AS said: “This is a valuable contribution to becoming the first company to establish a sea-based LNG supply chain in northern Norway”

“We naturally strive to deliver at the market’s most competitive price level, and expect that this will be the foundation for even more Norwegian companies and ships to be able to use LNG as fuel,” Olsen added.

Liquefied natural gas is an environmentally friendly fuel that is the most realistic solution for rapidly reducing global and local emissions of particles, sulfur oxides, carbon dioxide and nitrogen dioxide. All of these substances have particularly adverse health and environmental effects. There are large deposits of natural gas in the world, and the commodity is initially very reasonably priced. However, the current lack of customized logistics and infrastructure solutions results in unnecessary expenses for LNG consumers who select to use the environmentally friendly fuel. Logistic costs have therefore been a barrier for rapid implementation of LNG in industry and shipping.

CRYO Shipping is an independent shipping company with ambition to become a leading global operator in supply of environmentally friendly cryogenic fuels such as LNG, biogas and hydrogen for both industry and shipping.

“We have been working for a long time in establishing market-oriented and competitive infrastructure and logistics solutions based on seaborne transport. Currently we are working to commercialize a unique concept that can supply LNG to land-based industry as well as bunkering ships in an efficient and cheaper way compared to today’s existing solutions”, explains Olsen.

Source: CRYO Shipping AS

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