EMEA News
'Non-Sustainable' LNG Bunker Costs Prompt Ferry Conversions to Dual-Fuel Propulsion
The surge in the cost of LNG as a bunker fuel in 2022 has prompted Norwegian ferry company Fjord Line to convert two of its vessels to additionally run on conventional fuel.
The company plans to retrofit the MS Stavangerfjord and MS Bergensfjord to be capable of running on both LNG and MGO in the spring of next year, it said in a statement on its website this week.
"Unfortunately, increases in the LNG fuel costs has led to a non-sustainable financial situation for Fjord Line," the company said in the statement.
"Since early Fall, the LNG-ship departures from Vestlandet in Norway, Denmark, and Langesund in Norway have been reduced as well as the crossing time has been increased.
"This is of course not the way Fjord Line intend to operate our routes or the desired customer offering.
"However, adjustments to our route operations were necessary as a consequence of the extraordinary high fuel costs especially on LNG.
"In addition, we have worked immensely hard to develop and evaluate long-term alternatives enabling a return to our ordinary route operation on the routes between Vestlandet in Norway and Denmark and the route between Langesund and Hirtshals.
"The engine conversion enables the two LNG-ships to switch between LNG and MGO (Marine Gas Oil), which will ensure a financially sustainable operation until the LNG-price level is normalized."
LNG priced in fuel oil terms at Rotterdam has cost an average $1,802.50/mt in 2022, according to Ship & Bunker data, up by 137.3% from the average seen in 2021. For comparison, 2022's average MGO price at the Dutch hub was $1,048.50/mt, up by 83.1% on the year.
The ships commenced operations in 2013 and 2014. The first ships will be converted between January and May, and the second between February and June, with the work being carried out at Fosen Yard and the engines supplied by Wärtsilä.
