New Tanker Type to Deliver "Clean and Cheap" LNG Bunkers, Says CRYO Shipping

CRYO Shipping says it aims to become the world's first and largest LNG feeder and bunker vessel operator.

As part of the company's aim to become the world's first and largest liquefied natural gas (LNG) feeder and bunker vessel operator, Norway-based CRYO Shipping AS (CRYO Shipping) today announced that it has developed a new type of tanker design that will be able to supply shipowners with "clean and cheap" LNG bunkers.

"We are working with firm conversion project of platform supply vessels into LNG tankers which should be in operation already 1st half 2018," said Nicholai H. Olsen, managing director and partner of CRYO Shipping.

"We have designed the LNG system by using known technology, but combined in a new way. We have also developed design for newbuildings with completely new and unique functionality that we aim to contract when our portfolio can meet the investment."

The company explains that the ships will be able to perform feeding operations, as well as conduct ship to ship bunkering operations in all types of waters and ports.

"LNG is one of the most promising fuel solutions to reduce the global, regional and local emissions from shipping," said CRYO Shipping, adding: "this is also a fuel that there is plenty of in the world, but where infrastructure is missing."

CRYO Shipping says that, while about 1,000 LNG-powered ships are expected by 2020, with exponential growth into the next decade, currently, the few small scale LNG tankers that exist are not designed to the supply requirements of the growing LNG market.

The company says that ship to ship bunkering at port, anchor, and sea will be required to avoid traffic congestion at storage facilities and harbours - a problem that its new fleet of ships will be able to address.

Battery technology for supplying power during loading, unloading, and bunkering is set to be featured on the ships to "completely eliminate local and regional emissions during port stay," explains the company.

CRYO Shipping says it will be able to resolve the current uncertainty associated with LNG's cost structure, as it will be able to create "real competition" as an independent LNG player, breaking the market's current monopolies and associated artificial high prices in the market.

"Based on our preliminary market research, we have received very positive respond in the market where both LNG suppliers as wholesalers and manufacturers, and LNG consumers as heavy industry, power generation and shipping have shown great interest in our solutions," said Olsen, noting that the company is working on specific customer projects that will be announced soon.