Skangas Celebrates Bunkering Milestone

Norway-based supplier Skangas said March 19 it had completed 1,000 LNG bunkering operations in 2017, representing a more than 60% increase over previous years, pointing to pent-up demand from the sector.

"As more and more operators convert their ships to clean fuel with LNG and dual-fuelled engines to power them, demand has risen significantly," said Skangas's marine sales manager Gunnar Helmen: "We are responding directly by offering a number of solutions for this market."

Anticipating the marine market's desire to convert to cleaner fuels, Skangas put its new customised bunker-feeder vessel Coralius into operation in 2017. The company says its new ship, which can bunker ship-to-ship at sea, has improved the company's ability to be more flexible and responsive to vessels that require LNG without visiting a terminal or port.  Skangas can also bunker vessels at its land-based terminals, its production facility near Stavanger, and via truck-to-ship bunkering at seaports throughout Scandinavia.

During 2017 the truck-to-ship method accounted for around 60% of Skangas' 1,000 LNG bunkering operations carried out in 2017, followed by terminal-to-ship 38% (including its LNG production facility), and ship-to-ship at sea 2%.

Skangas expects demand for LNG by the marine market to increase significantly during the coming years.  "Already, the number of bunkering operations we've executed for the marine market is higher than in Q1 2017," said Helmen. "Clearly, 2018 is set to be another exciting year for Skangas, as we continue to provide readily accessible LNG to industries that operate at sea and onshore throughout the Nordic states."

Skangas -- which is 70% owned by Finnish gas utility Gasum and 30% by Norway's Lyse -- is a market leader in the LNG bunkering of vessels in northern Europe, competing with Shell-owned Gasnor, Engie and Linde-owned Nauticor, with Gazprom also seeking a slice of the market.

Skangas' Coralius vessel bunkering the Fure West (Credit for this and banner photo: Skangas)