Skangass signs LNG ship-to-ship bunker contract with North European Oil Trade

4 December 2014 (Last Updated December 4th, 2014 18:30)

Norway-based LNG provider Skangass has signed an agreement with North European Oil Trade (NEOT) to supply liquefied natural gas (LNG) for NEOT's chartered vessels that will enter into operation in 2016.

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Norway-based LNG provider Skangass has signed an agreement with North European Oil Trade (NEOT) to supply liquefied natural gas (LNG) for NEOT’s chartered vessels that will enter into operation in 2016.

Under this agreement, one of the first ship-to-ship bunker contracts for LNG in Europe, Skangass will deliver LNG in the Lysekil-Gothenburg-Skaw region of the Baltic Sea.

Skangass CEO Tor Morten Osmundsen said: "LNG has fantastic potential as fuel for vessels and we are determined to further develop the infrastructure to serve the market with LNG in an attractive way.

"A ship-to-ship supply solution is the logical development for bunkering of LNG in the future as the number of vessels using LNG as fuel seems to be growing."

Currently, Skangass delivers LNG to marine customers through truck-to-ship, terminals-to-ship and ship-to-ship contracts.

"Currently, Skangass delivers LNG to marine customers through truck-to-ship, terminals-to-ship and ship-to-ship contracts."

This agreement shows the increasing demand of LNG in the maritime market due to its price competitiveness and also its status as a clean fuel that meets the MARPOL Protocol regulations.

NEOT chartering manager Satu Mattila said: "We believe LNG technology will help us to ensure continuous operations in the Baltic Sea region by meeting the Sulphur Emission Control Area (SECA) requirements, binding from 1 January 2015.

"Skangass has shown great willingness to secure supply of LNG to the two new time-chartered vessels and we are convinced that this will work swiftly when we go into operation."

Recently, Skangass signed a two-year agreement with Eni for the supply of LNG to strengthen its small-scale availability in the Nordic markets.


Image: Skangass will deliver LNG in the Lysekil-Gothenburg-Skaw region of the Baltic Sea. Photo: courtesy of Skangass AS.