• Natural Gas News

    LNG Bunkering: a First for NEOT

Summary

The oil products trader has just bought its first LNG for bunkering while also taking on its cargo of refined crude.

by: William Powell

Posted in:

Natural Gas & LNG News, Europe, Liquified Natural Gas (LNG), Corporate, Gas for Transport, News By Country, EU, Finland

LNG Bunkering: a First for NEOT

Finnish North European Oil Trade (NEOT) became September 12 the first company in the Swedish port of Sodertalje to receive LNG from the world’s largest LNG bunker supply vessel Kairos. A delivery of 150 metric tons was loaded on to product tanker Ternsund and in another first for the Baltic Sea, the operation happened simultaneously with the loading of the cargo of oil (known as simops).

The port's authority said that the operation "went very well. Establishing alternative fuels in the port fits perfectly well into our overall strategy to minimise environmental impact and emissions. Supporting the development of solutions, which benefit both the business and the environment, is an investment into the future of our port.”

Nauticor, charterer of Kairos, described the operation as "an important milestone for the development of the LNG supply infrastructure. We are happy to have been chosen by NEOT as partner for this operation and see a profound basis for future operations after such a successful first run.” It told NGW in April that it sells LNG priced either off the Dutch wholesale gas hub TTF, or off marine gas oil, depending on customer needs.

The bunker operation puts into practice the contract for the supply of LNG, which was signed by Nauticor, a supplier of LNG as marine fuel, and NEOT, an independent fuel supply company in the Baltic Sea. The agreement covers the supply of LNG by ship to NEOT’s fleet of time-chartered product tankers running on the environmentally friendly fuel.

NEOT said its vision is "LNG is an established fuel solution with lower environmental impact that has been used in our shipping operations for years. We are continuously developing more flexible sourcing options for LNG together with our partners."

When used as engine fuel, LNG produces lower emissions not just of carbon dioxide but of sulphur, nitrogen and particulate matter than gasoil.