New Skaugen gas carrier to expand LNG bunker infrastructure

The 10,609 dwt newbuilding is the world’s first LNG/LPG/Ethylene tanker built in China and measures 137m overall in length, 19.80m in width, with a maximum depth of 11.50m and a capacity of 10,000 m3. Named Norgas Innovation, she initially entered the fleet of Norgas Carriers, the I.M. Skaugen company involved in the maritime transportation of petrochemical gases and LPG. However, this first Multigas vessel will, in the second half of 2010, be dedicated to Nordic LNG and their Mini LNG business in Scandinavia.

Classed by GL, the ship’s hull was built by Taizhou Wuzhou Shipbuilding Industry, in Zhejiang Province while its cargo system, built and installed by Shenghui Gas & Chemical Systems, is capable of carrying two grades of completely segregated gases simultaneously, cooled and un-cooled, with a unique liquefaction system for LNG.

Nordic LNG, a joint venture between Lyse and I.M. Skaugen, will supply natural gas to ‘stranded’ customers who do not have access to pipeline networks. The Multigas vessel will be used to transport the LNG directly industrial to end-users as well as to Nordic LNG’s own hub terminals for onward distribution. End user markets include also the maritime fuel market, where LNG will replace bunker oils.

The long term future of heavy fuel oil as bunkers is questionable, both in terms of dependency on oil and not at least with regards to emissions. Natural gas in contrast gives a far more environmentally friendly combustion and in addition there appear to be greater reserves available than oil. Thus natural gas in liquid form (LNG) as marine bunkers has the potential to be the solution for the shipping industry to cope with its emission challenges in the years to come. By running their vessels on LNG shipowners will be able to solve their emission problems at the source and avoid the need for auxiliary equipment such as scrubbers and selective catalytic reduction (SCR) units.

To make LNG a real alternative to traditional fuel oil and diesel oil bunkers, a suitable infrastructure has to be developed. This means that LNG has to be shipped from either LNG liquefaction plants or traditional LNG import terminals to smaller regional hubs. There, LNG-fueled ships can bunker either directly or from smaller LNG bunker vessels serving the hub.

The flexibility inherent in the cargo-handling system enables the Multigas ships to move between the LNG, LPG and petrochemical gas trades as commercial circumstances dictate. However, it is the ability to handle LNG at cryogenic temperatures which makes these ships particularly notable. Skaugen is poised to play a pioneering role in the local and regional distribution of LNG at a time when the global LNG trade is growing strongly and the natural gas supply chain is being extended to provide remote communities with access to this clean-burning fossil fuel for the first time. Interest in both the Mini LNG concept and Skaugen’s Multigas newbuilding programme has grown strongly in recent years and the company is confident that these vessels have a bright future in serving regional LNG distribution markets.

The vessel was delivered to its owners, a Singapore based company called Singco Gas Pte Ltd, a 50/50 joint venture between GATX Corporation and by I.M. Skaugen Marine Services Pte Ltd, a 100% owned subsidiary of Norway-based I.M. Skaugen. Flying Singaporean flag, the vessel will be operated by Norgas Carriers AS.

The company has so far in total six (4 x 10,000m3 + 2 x 12,000m3) such ships under construction through Skaugen Marine Construction, the division within I.M. Skaugen that manages its newbuilding activities in China. The delivery of these six vessels will be completed over the next two years, but the longer-term plan is to build at least 10 of these Multigas carriers.

The Multigas ships are built to the classic semi-pressurized/fully refrigerated (semi-ref) gas carrier design. In addition to LNG, the vessels are able to carry a wide range of other liquefied gas cargoes, including ethylene, LPG and vinyl chloride monomer (VCM).

Irrespective of the liquefied gas being carried, cargo boil-off gas on the Multigas ships will be reliquefied by specialist equipment onboard and returned to the cargo tanks. When LNG is being carried, an innovative Mini LNG plant will be utilized to reliquefy all natural gas boil-off. The Mini LNG plant’s patented and licensed technology was developed by Skaugen in cooperation with SINTEF Energy Research in Norway.