EMEA News
Skangass Inks LNG Bunkering Deal
Skangass Wednesday announced it has entered into an agreement with North European Oil Trade (NEOT) to supply Liquefied Natural Gas (LNG) to vessels on time charter to NEOT from 2016.
The agreement, which will see Skangass supply NEOT with LNG bunkers in the Lysekil-Gothenburg-Skaw region of the Baltic Sea, is said to be one of the first ship-to-ship LNG bunker contracts in Europe.
"LNG has a fantastic potential as fuel for vessels and we are determined to further develop the infrastructure to serve the market with LNG in an attractive way," said Skangass CEO Tor Morten Osmundsen.
"A ship-to-ship supply solution is the logical development for bunkering of LNG in the future as the vessels using LNG as fuel seems to be enlarging."
Skangass said it is now able to offer LNG supplies to marine customers via truck-to-ship, terminal-to-ship and ship-to-ship methods.
The company also said that the agreement was clear evidence of growing demand from the maritime industry for LNG, as a result of LNG's price competitiveness and its status as a "clean fuel."
"We believe LNG technology will help us to ensure continuous operations in the Baltic Sea region by meeting the Sulphur Emission Control Area (SECA) requirements, binding from the 1st January 2015," said Satu Mattila, Chartering Manager at NEOT.
Shell was this week said to have placed an order for a seagoing LNG bunkering vessel intended for operation at Rotterdam.
