Deep Sea LNG-Fuelled Ships Target Trans-Atlantic Price Arbitrage

Deep Sea LNG-Fuelled Ships Target Trans-Atlantic Price Arbitrage

Copenhagen-headquartered gas and chemicals transporter Evergas’s deal to supply eight Liquefied Natural Gas (LNG)-fuelled ships for use on trans-Atlantic routes represents a significant milestone in LNG shipping, news outlet Lloyd’s List reports.

While the use of LNG as a marine fuel on short-sea routes has been gathering momentum, this trend has not yet been seen for deep sea LNG-fuelled voyages.

The eight vessels are being built in China and aim to capitalise on the current arbitrage between U.S. and European prices for shale gas and chemicals.

Evergas this month announced that petrochemicals producer Ineos had increased its order, originally placed last year, from six to eight vessels, which Evergas will charter to Ineos for up to 15 years.

“These vessels are the largest, most flexible and advanced multigas carriers yet to be built, securing INEOS with a highly flexible solution for their ethane supplies, yet at the same time providing the benefit of transporting LNG, LPG as well as petrochemical gases including ethylene,” said Evergas.

Evergas also commented that it is looking to growing demand for gas as a marine fuel as a growth driver for the company.

Lloyd’s Register earlier this year said the shipping industry could be on the eve of deep sea LNG-fuelled shipping.

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