Skangas to supply LNG for ESL's bulk carriers

Skangas, supplier of LNG in the Nordic markets, and ESL Shipping, a carrier of dry bulk cargoes in the Baltic region, have entered into a marine fuel agreement.

Skangas will supply gas fuel to ESL's LNG-powered bulk carrier newbuilds. The two new vessels will start operating during first half of 2018. The first of the two vessels was named Viikki in June 2017.

"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," said 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."

The new, ice-class 1A ships will be the first LNG-fueled large bulk carriers in the world, representing the latest in technology. They will carry out sea transports within the Baltic Sea and the North Sea. 

 

 

As part of the agreement, Skangas will also deliver ESL Shipping with the low-carbon liquefied biogas (LBG). LBG and LNG are interchangeable as fuel, and so the same LNG supply chain is used. The Viikki is fitted with a dual-fuel engine.

Shipowners are turning to LNG as their primary source of fuel. By 2020, nearly 200 vessels are expected to be running on LNG worldwide. This number is expected to rise significantly, as LNG is recognized by the marine industry as the most viable alternative fuel to reduce emissions.

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