Gothenburg renews and extends LNG tariff discount

Tuesday, 07 August 2018
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The Gothenburg Port Authority has renewed and extended its tariff discounts for LNG, incentivising uptake of the fuel for operators at the port. 

The GPA initiated a 10 per cent discount on the port tariff in 2015 and isnce then has rep[ored a “positive impact” with reduced emissions of sulphur dioxide, particles and nitric oxide in western Sweden. As a result, vessels that run on LNG receive an extra discount of 20 per cent each time they call. 

“A catalyst was necessary to break the deadlock, and the energy discount has been a strong contributing factor behind many players choosing to follow the LNG route,” Edvard Molitor, Environmental Manager at the GPA, said.

Tariff phase-out in 2020

The LNG discount was due to run to the end of this year but will now run in 2019 before being phased out during 2020 with a reduction to 10 per cent when the Port Authority will focus on developing the regular indexed environmental discount, which takes greater account of the vessels’ environmental impact rather than the technology or the fuel used to run the vessel.

“We will of course continue to support vessels that offer a good environmental profile, but we won’t make any distinction in the discount between vessels that produce the same environmental outcomes. As the environmental effects of LNG operation continue to be good, these will also be incorporated into our future environmental control system,” Molitor commented.

GPA posts record LNG calls

The port of Gothenburg is the largest port in the Nordic region, handling approximately 30 per cent of Swedish foreign trade and operating multi-modal transport to the rest of Scandinavia, making it a major driver for LNG uptake in the region.

The GPA reports a sharp increase in LNG calls with zero in 2015, 16 in 2016, 11 last year and 135 projected for full year 2018.

“It took time before it really took off, but today these players are at the LNG forefront at the Port of Gothenburg. Now that the discount period is drawing to a close, we can see that the upward trend is continuing at the port with a growing number of LNG calls. We aim to maintain our
support for this development, and we are therefore planning to extend the four-year discount period by a further two years,” Molitor added. 

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