Contract Signed for LNG Powered Ship

Friday, June 30, 2006
Statoil has awarded Eidesvik Shipping AS the contract for the delivery of a supply ship fuelled by liquefied natural gas (LNG). Running for a period of five years from October 2006, with three one-year options, this contract is worth almost NOK 370 million, including options. This is a Vik Sandvik 493 LNG-Avant ship of the same design as Viking Avant, which is already chartered by Statoil. The new ship is planned to transport supplies from Kristiansund to the Halten/Nordland area. Statoil is the only company that uses LNG-fuelled ships in offshore operations worldwide. “Statoil has two LNG-fuelled ships under existing contracts. They have performed to our full satisfaction, not least in terms of the environment. LNG-fuelled ships emit considerably less NOx and carbon dioxide than conventional diesel-powered ships,” says Anne Therese Hestenes, senior vice president, operations support, in the Exploration & Production Norway business area. The emissions of nitrogen oxides (NOx) are expected to be cut by almost 90%, which represents 160 tonnes per year. This corresponds to the annual NOx emissions from 20,000 cars. The carbon emissions will be reduced by approximately 20%. The supply ship, which is under construction at the Westcon shipyard at Ølen in south-western Norway, is scheduled to be delivered in the autumn of 2007. Another ship will be used during the construction of the LNG-fuelled ship.

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