Skangas, supplier of LNG in the Nordic markets and ESL Shipping, the leading carrier of dry bulk cargoes in the Baltic region, have entered into a marine fuel agreement. Skangas will supply gas fuel to ESL’s LNG-powered bulk carrier newbuildings. These two new vessels will start operating during first half of 2018. The first of the two vessels was named Viikki in June 2017, honouring the shipping company’s tradition to name its ships for places in Helsinki.
“This agreement is a milestone for Skangas. MS Viikki will be the first vessel that we will serve from the new LNG terminal in Tornio”, explains Kimmo Rahkamo, CEO of Skangas. “There will be more to come. The use of LNG in marine transport can deliver significant environment, economic and social benefits.”
ESL Shipping supports this view: “Our new vessels are full of innovation, and they are pioneers in eco-friendliness and transportation efficiency,” says Mikki Koskinen, Managing Director . “This is a large step towards even greener shipping. Our combination of latest hull design and numerous other energy saving measures together with usage of LNG as fuel will reduce the carbon dioxide emissions per ton of cargo transported by more than 50 percent in comparison to present generation of vessels. This agreement also helps us to lower our operational costs,” he concludes.
These new, ice-class 1A ships will be the first LNG-fuelled large bulk carriers in the world, representing the latest in technology and innovation and will carry out sea transports within the Baltic Sea and the North Sea. As part of the agreement, Skangas will also deliver ESL Shipping with the low-carbon liquefied biogas (LBG). LBG and LNG are interchangeable as fuel and thus the same LNG supply chain is used. The Viikki is fitted with a dual-fuel MAN B&W 5G45ME-C9.5-GI engine.
Shipowners world wide are turning to LNG as their primary source of fuel. By 2020 there will be nearly 200 vessels worldwide running on LNG. This number is expected to rise significantly, as LNG is recognized by the marine industry as the most viable alternative fuel to reduced emissions.
LNG marine fuel meets all current and planned environmental requirements. It also eliminates particles and significantly reduces CO2 emissions. LNG marine fuel is available, and will remain economically efficient for the foreseeable future.