Skangas to provide LNG to first LNG-fueled large bulk carriers

Skangas has entered into an agreement with ESL Shipping for providing LNG to ESL’s bulk carrier newbuildings. The new, ice-class 1A ships will be the first LNG-powered handysize bulk carriers in the world, that will carry out sea transports within the Baltic Sea and the North Sea.

 “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” says Mikki Koskinen, Managing Director of ESL Shipping.

Under the agreement, Skangas will also deliver ESL Shipping with liquefied biogas (LBG). LBG and LNG are interchangeable as fuel and thus the same LNG supply chain is used.

    “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.”

The two vessels will start operating during first half of 2018. The first of the two vessels was named “Viikki” in June 2017, honoring the shipping company’s tradition to name its ships for places in Helsinki.

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.