Skangas Set to Supply ESL Shipping Newbuilds with LNG Bunkers

by Ship & Bunker News Team
Thursday August 24, 2017

Skangas AS (Skangas) today announced that it has entered into an agreement with ESL Shipping to provide bunkers to ESL's two newbuild liquefied natural gas (LNG)-powered bulk carriers, which are set to begin operations during first half of 2018.

The new, ice-class 1A ships, set to be the first LNG-fuelled large bulk carriers in the world, are said to represent the latest in technology and innovation.

"Our new vessels are full of innovation, and they are pioneers in eco-friendliness and transportation efficiency," said Mikki Koskinen, Managing Director of ESL Shipping.

"This is a large step towards even greener shipping. 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."

As Ship & Bunker has reported, one of the two newbuilds was christined Viikki at a ceremony at the Jinling shipyard in Nanjing, China in June.

"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," explained 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."

In November, it was reported that ESL Shipping, through the EU's Connecting Europe Facility for Transport instrument, was set to receive as much as €5.9 million ($6.25 million) between 2016 and 2019 to support the construction of the company's newbuild LNG-fuelled Handysize dry bulk carriers.