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NYK orders world's first LNG bunker tanker

NYK orders world's first LNG bunker tanker
Nippon Yusen Kaisha (NYK) has ordered the world’s first LNG bunker tanker at Hanjin Heavy Industries and Construction (HHIC) for a planned LNG bunkering business in North Europe with GDF SUEZ and Mitsubishi Corporation.

The 6,000 gt vessel to be delivered in 2016 will be based in the port of Zeebrugge, Belgium to deliver LNG to gas-powered vessels operating in the North and Baltic Seas.

“With increased emission regulations, demand for LNG as a fuel is growing in the seas around Europe,” NYK said.

The tanker will be the core infrastructure of a new joint venture between NYK, GDF SUEZ and Mitsubishi, both of which the Japanese owner partners in LNG shipping operations, to develop an LNG bunkering business.

“Taking further advantage of these partnerships, GDF SUEZ, Mitsubishi, and NYK intend to establish a company to own the LNG bunkering vessel, as well as an LNG-fuel sales company, which will charter the vessel, to build a solid sales framework in Europe. In the future, the joint venture aims to expand its business globally,” NYK said.

The LNG bunkering business will be initially targeted at gas-powered car carriers operated by Oslo-headquartered United European Car Carriers (UECC), a joint venture between NYK and Wallenius Lines, as well as other LNG-fuelled vessels operating in Northern Europe. UECC ordered two LNG-fuelled car carriers in March this year.

There are currently around 50 LNG-powered vessels operating in North European waters, mainly ferries, cruise ships and offshore vessels. LNG bunkering operations are currently carried out use shoreside road tankers.

The introduction of strict 0.1% sulphur limits in the North and Baltic Sea Emission Control Areas (ECAs) next year is expected to drive the adoption of LNG as a fuel for ships.

“Toward meeting international efforts to control emissions from ships, LNG-fuelled vessels are widely seen as an important countermeasure for reducing harmful emissions and thus mitigating any environmental impact,” NYK said.

This week saw the port of Gothenburg announce a 30% reduction in tariffs for LNG fuelled vessels from 2015.