Cryo Shipping, a newly established Norwegian independent shipper, developed a new type of tanker design as it aims to become a major LNG feeder and bunker operator.
The company aims to establish a fleet of small-scale LNG tankers to be able to secure supply of LNG to consumers regardless of location. The ships will be able to perform both feeding and ship-to-ship (STS) bunkering operations in all types of waters and ports, Cryo Shipping said in its statement.
“We are working with firm conversion project of platform supply vessels into LNG tankers which should be in operation already 1st half 2018,” says Nicholai Olsen, managing director and partner of Cryo Shipping.
Olsen noted the company has designed an LNG system and a design for newbuilds that the company aims to contract once its portfolio is capable of meeting the investment.
The LNG-fueled fleet is expected to reach about 1000 vessels by 2020 with further expansion expected during the next decade. However, Cryo Shipping adds in its statement that the current small-scale LNG fleet is not designed to meet regularity and supply requirements in a growing LNG market.
Use of LNG storage bunkering facilities will result in congested traffic at storage facilities and harbors, the company claims, adding that it plans to focus on providing direct STS bunkering both at port, anchor and at sea.
Cryo Shipping also aims to facilitate the shipping industry’s implementation of LNG as fuel by creating competition in the market and driving the costs down.
The company also plans to use LNG as fuel for their vessels, and to use battery technology to supply power during loading, unloading and STS bunkering.
Olsen said that the company’s preliminary market research yielded a positive response, adding that Cryo Shipping is currently working on specific projects that are expected to be announced soon.