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UASC to establish LNG bunkering station in the Middle East

UASC to establish LNG bunkering station in the Middle East
UASC plans to establish an LNG bunkering station in the Middle East to allow its mega-boxship newbuildings to refuel on outbound and inbound legs on the Asia – Europe trade.

Last year UASC ordered five 18,000 teu and five 14,000 teu containerships from Hyundai Heavy Industries to an “LNG ready” design classed by DNV GL.

Speaking at a seminar in Singapore, Jost Bergmann, business director containerships for DNV GL, said that UASC wants to refuel its ships twice on a the Asia – Europe trade where they will be deployed. “They are going to establish an LNG bunkering station in the Middle East,” he said.

Bergmann said the container line is preparing for options to either bunker in port or through ship-to-ship transfers. “They basically don’t want to have to come into port.”

The Middle East is seen as an ideal location for LNG bunkering on the Asia – Europe trade as it is at roughly the mid-point of the voyage. UASC’s shareholders include Qatar, which is a major producer and exporter of LNG.

As LNG ready vessels the new UASC ships will not initially be fitted with the expensive LNG fuel tanks and piping, however, have been designed for a quick conversion. The vessels will start being delivered from the end 2014 and will initially run on heavy fuel oil.

Apart from the UASC newbuildings, DNV – GL is also classing Matson’s dual fuel containerships in the US and Crowley Maritime’s LNG powered ConRo vessels also in the US. “This is just the beginning [for LNG] on container vessels,” Bergmann said.

Looking at the availability of LNG as fuel worldwide he said, “So far we have had in many parts of the world a kind of chicken and egg situation.”

Progress is particularly being seen in the North European and Baltic Sea area where a 0.1% sulphur limit will apply in the Emission Control Area (ECA) from 2015. He said there would plenty of options in this area for LNG bunkering in one to two years time.