LNG

Enagás, the Spanish gas grid and liquefied natural gas terminal network operator, and maritime fuels company Peninsula Petroleum Ltd, have signed a joint venture deal for the building and charter of an LNG bunkering vessel based at the Port of Algeciras to serve the Strait of Gibraltar shipping lanes.

The bunkering vessel with capacity of 12,500 cubic metres will be built at the South Korean Hyundai Mipo Dockyard shipyard and is expected to be delivered in the third quarter of 2023.

The vessel will be chartered by Peninsula through an initial seven-year contract. It will load LNG fuel at Enagás regasification terminals, mainly the one at Huelva in southwest Spain.

The Enagás subsidiary called Scale Gas signed the agreement with Peninsula.

The LNG bunkering project will be co-financed by the European Union to the tune of €11 million ($13.3M) as part of the EU Connecting Europe Facility (CEF) transport aid programme.

The financing is available as part of the EU’s support of the development of LNG as a maritime fuel to help avoid sea pollution and to improve air quality in ports.

“The signing of this agreement is in line with Enagás’s commitment to promoting the development of a value chain that allows more efficient and sustainable maritime transport,” said Marcelino Oreja, Chief Executive of Enagás .

John A. Bassadone, the CEO and founder of Peninsula, said the project would serve a growing market and promote cleaner fuel.

“Peninsula and Enagás share the vision of developing the use of LNG as a transitional maritime fuel,” explained Bassadone.

“Having the support of a partner like Enagás is incredibly positive and exciting,” he stated.

Also party to the agreement is the Spanish Port Authority of Algeciras.

“We have been working intensely to promote alternatives to current fuels and developing the use of LNG as a proven technology that is currently available to serve ship owners already asking for LNG in the Port of Algeciras,” said Gerardo Landaluce, President of the Algeciras Port Authority

“Two years after the signing of this agreement, supported by Enagás and along with the co-financing of the European Union, the Bay of Algeciras will have a stable LNG bunkering supply service,” added Landaluce.

The European Commission is giving financial support for the construction of the first LNG bunkering barge to operate in the Port of Algeciras near the Strait of Gibraltar under a project backed by Enagás, the Spanish gas network and LNG terminal operator as well as the local Port Authority.

The executive arm of the European Union has signed an agreement with Enagás covering the co-financing to build the first barge dedicated to LNG bunkering in Algeciras.

The barge will load LNG at the Enagás import terminal in Huelva in southwest Spain and will operate in the port area of Algeciras.

The project consists of the construction of the barge with a storage capacity of 12,500 cubic metres of LNG and commissioning is scheduled for 2023.

Once in operation, the barge will re-fuel shipping customers or reload other barges for subsequent supply to smaller ships in Algeciras Bay or in the Port.
“This project is promoted by the Enagás subsidiary specialized in small-scale LNG supply infrastructures, Scale Gas, and the Port Authority of the Bay of Algeciras (APBA),” said Enagás.

The EU initiative, coordinated by Enagás, is part of the “LNGhive2” strategy led by Spain’s Puertos del Estado and the EU’s transport aid program called Connecting Europe Facilities, which will finance 20 percent of the project, or approximately €11 million (£13.5M).

“The objective is to support the development of the LNG market as a sustainable maritime fuel, in line with the European Directive 94/2014 on alternative fuels,” explained Enagás.

The Port of Algeciras, which handles containerships, cargo vessels and ferries to North Africa, made the first supply of LNG as fuel for ships in Spain by tanker truck and in 2012 in a truck-to-ship transfer.

In 2020, seven such operations were carried out in Algeciras and 300 percent more LNG was supplied to ships than in 2019.

Once operational, this new barge will support both ship-to-ship and truck-to-ship operations.

Enagás noted that six Spanish ports now offer LNG bunkering.

LNG is seen by the shipping industry as a solid alternative for the move towards the decarbonisation of maritime transport and is regarded as the cleanest fuel among those currently available.

“In addition to promoting more sustainable maritime transport and improving air quality in the Bay of Algeciras, this project will consolidate efforts by Spain and the Port of Algeciras to be a European benchmark for LNG bunkering in the Strait of Gibraltar,” stated the Spanish company.

According to the European Maritime classification society DNV GL, there are more than 175 LNG-powered vessels operating in the world.

“This new ship for Port of Algeciras will join the 20 barges that already supply LNG worldwide and will reinforce the role of the country, and its respective ports, in the field of LNG bunkering,” stated Enagás.

The Spanish HAM Group has acquired 11 new LNG-powered truck tractors from Swedish vehicle manufacturer Scania to join its own fleet in the Transportes HAM unit, a leading European company in the road haulage sector.

Jan 14 (LNGJ) - HAM Group of Spain, an LNG and compressed natural gas fuel and bunkering services firm, said it acquired FNX Liquid Natural Gas, a small-scale natural gas liquefaction company based in the Basque company of northwest Spain.  

   FNX focuses on the design, manufacturing and installation of mini  liquefaction plants, also including equipment for processing natural gas from wells and other sources. FNX has its own manufacturing facilities in the North of Spain for the design, construction and design of equipment. 

“Specialized in the manufacture of equipment for liquefaction, FNX offers a wide range of project management services, being able to carry out the complete management of the customer’s facility, if requested,” said HAM.

Three Dutch companies have cooperated in the bunkering with liquefied natural gas off Indonesia of the world’s largest and strongest semi-submersible crane, now headed for Europe.

Heerema Group, the Dutch marine offshore contractor, said the crane built in Singapore will be heading for Spain.

The semi-submersible crane, called the “Sleipnir”, will take 45 days to reach its destination. The vessel can be powered on a dual-fuel basis with LNG and Marine Gasoil (MGO), thus reducing harmful emissions.

The vessel has just received LNG in a ship-to-ship transfer 12 miles off the coast of Indonesia from the LNG bunkering vessel, the 10,000 cubic metres capacity “Coral Fraseri”, owned and managed by Dutch shipping line Anthony Veder.

“Since LNG is not yet obtainable worldwide this is among the first LNG bunkering operations in this area of the world,” said Heerema.

Another Dutch company, Amsterdam-based fuel supplier Titan LNG, has chartered the “Coral Fraseri” for the fuel operation, thus resulting in unique Dutch cooperation.

“We are excited by serving Heerema’s ‘Sleipnir’ in this LNG bunkering operation in cooperation with Titan LNG, and look forward to many more,” said Jan Valkier, Chief Executive of Anthony Veder.

“Shortly after adding the ‘Coral Fraseri’ to our fleet we have already mobilized her in the small-scale LNG market, which underlines our strong position and commitment in supplying the maritime industry worldwide sustainable solutions for LNG as marine fuel,” added Valkier.

Koos-Jan van Brouwershaven, the CEO of Heerema, said that not only was the “Sleipnir” the world’s largest and strongest sea-borne crane, it is also first of its kind as far as sustainability goes.

“We are making offshore history. No other vessel has such numerous features. Our LED lights and shore-power electricity are only a few examples of Heerema’s ambition in this area,” added Van Brouwershaven.

“The ‘Sleipnir’ design clearly showcases Heerema’s dedication to sustainability beyond simply compliance,” explained the Heerema CEO.

“It shows that we act sustainable because we want to. Not because we have to. This specific project of bunkering LNG is proof of this ambition,” he stated.

“We are very pleased to work together with Dutch company Titan LNG, since it provided us with good solutions for bunkering, in Singapore as well as in Spain. The involvement of a second Dutch company, Anthony Veder, makes this maiden voyage extra special,” added Van Brouwershaven

Anthony Veder said the “Sleipnir” will now set sail for Spain, rounding South Africa’s Cape of Good Hope.

In Spain, Titan LNG and the “Coral Fraseri”, which is returning to Europe via the Suez Canal, will again supply LNG bunkering services for the “Sleipnir”.

Supplies of liquefied natural gas as a maritime fuel for vessels passing the Strait of Gibraltar and the development of infrastructure were considered at a European Union-backed meeting at the Spanish port of Algeciras.