Early next year, the Polish ORLEN Group will take delivery of two custom-built LNGCs under long term charters from Knutsen OAS Shipping.
By the end of 2025, the number of LNGCs operated by the Group will increase to eight, the company said, which will allow it to be able to efficiently manage shipments to Poland and strengthen its position on the global LNG market.
A naming ceremony was recently held at Hyundai Heavy Industries’ Ulsan shipyard for the two LNGCs, which were ordered by Orlen subsidiary, PGNiG Supply & Trading, in co-operation with Knutsen.
The first ship was named ‘Lech Kaczyński’, and the second ‘Grażyna Gęsicka’.
“For energy security of Poland, it is crucial to diversify the supply of oil and natural gas – the latter we already import 100% from outside Russia. This is the result of a consistently implemented LNG imports strategy. The shipments of liquefied natural gas already cover almost 30% of our country’s demand.
“LNG supplies are secured not only by means of contracts, but also by developing our own fleet. Custom-built vessels for our exclusive use guarantee the stability of transport and strengthen the company’s position on the global LNG market,” explained Daniel Obajtek, PKN ORLEN CEO.
The Polish company will operate the ships under a longterm charter from Knutsen. Under the terms of the contract, the shipowner will be responsible for manning the chartered vessels and maintaining them in good technical condition, while PGNiG Supply & Trading will have full commercial control over their operation.
“Knutsen OAS Shipping is very pleased to have established a long term relationship with PGNIG Supply and Trading. These safe, reliable and state of the art environmentally friendly LNG carriers will help them to succeed in their LNG business,” said Trygve Seglem, Knutsen Group head.
Long term charters
Both LNGCs will be chartered for 10 years with an extension option. Each vessel will be able to carry about 70,000 tonnes of LNG, equivalent to about 100 mill cu m of regasified natural gas.
One of their technical features is a very low rate boil-off gas (BOG) loss rate. The BOG can be switched to a liquid state thanks to on board reliquefaction systems fitted.
The vessels’ engines can run on both diesel oil and natural gas, which will ensure their compliance with environmental standards for maritime transport well into the future, the company claimed.
‘Lech Kaczyński’ has already undergone sea trials and will enter service under the ORLEN banner early next year, while ‘Grażyna Gęsicka’ will deliver her first LNG cargo in the second half of 2023.
Both vessels will be used to deliver LNG purchased under both long-term and spot contracts on a free-on-board (FOB) basis, where the buyer assumes responsibility for collecting and shipping the goods.
