EMEA News
SABIC In LNG-Fueled Chemical Tanker First
Saudi Basic Industries Corporation (SABIC) says yesterday it has ordered two sea-going gas tankers powered by liquefied natural gas (LNG), becoming the first chemical company to commission vessels running on the cleaner fuel.
The ships will operate in the North Sea, transporting olefins products from a plant in Teesside in the United Kingdom to Northwest Europe and Scandinavia.
The ships, to be contracted from Dutch company Anthony Veder, are set to be delivered in 2014 in anticipation of tighter sulfur emissions limits in the European emissions control area (ECA) starting in 2015.
"We believe this initiative is the right thing for SABIC to do both from an environmental point of view as well as an economic point of view," said Michel Wintraecken, SABIC Manager Sourcing & Contracting, Supply Chain Chemicals Europe.
"The environmental benefits are profound and we also see it as a clear advantage that LNG is a bunker fuel which pricing is disconnected from crude oil."
Anthony Veder owns and operates a fleet of gas tankers for the transportation of petroleum and chemical products.
In recent years, we have built up a good deal of experience with LNG-powered ships," said Jan Valkier, CEO of Anthony Veder.
"Our fleet is being continuously modernized, renewed and adjusted to comply with regulations, customer requirements and the high standards upheld by the gas industry.
"We are very pleased to be working together with a company like SABIC in a proactive stance towards the sustainability of commercial shipping."
Wärtsilä Corporation (Wärtsilä) said yesterday that LNG provides the best option for complying cost-effectively with new emissions rules.
Ports in Germany and Belgium are making infrastructure adjustments to prepare for an increase in demand for LNG bunkering in Northern Europe.
