The Bergen-based Norwegian shipping company, CRYO Shipping AS, announced the establishment of seaborne LNG transportation services in northern Norway, aiming to be the first player to offer LNG infrastructure solutions in the northernmost counties in Norway.
The company will establish short-sea shipping services for transport of LNG in Northern Norway, in order for new and existing LNG consumers in the region to finally have access to supply of the environmentally friendly fuel (LNG) by ship in a cost-effective and socio-economic way with the least possible impact for local environment.
This step is expected to enable LNG supply in the northern part of Norway, as the distribution of LNG in Nordland, Troms and Finnmark is carried out solely by land transport, ie. the delivery of small unit volumes with road tanker and tank container, which entails expensive logistics with heavy loads on roads, environment and increased risks of road traffic safety.
Flexible, efficient and environmentally friendly transport solutions that accelerate the green shift have high priority for Norwegian authorities, and it is important to ensure short-sea shipping is competitive in order to increase freight carried at sea. The Norwegian Coastal Administration has concluded that CRYO Shipping’s LNG seaborne transport services in Northern Norway will have a great value for both environment and society, and CRYO Shipping has been awarded EUR 1 million in grants to establish the LNG trade lane.
“This is a valuable contribution to becoming the first company to establish a seabased LNG supply chain in northern Norway, thus ensuring transport of LNG is carried out in an environmentally friendly and socio-economic way. We naturally strive to deliver at the market’s most competitive price level, and expect that this will be the foundation for even more Norwegian companies and ships to be able to use LNG as fuel», says Nicholai H. Olsen, Managing Director of CRYO Shipping AS.
As explained, there are large deposits of natural gas in the world, and the commodity is initially very reasonably priced. However, the current lack of customized logistics and infrastructure solutions results in unnecessary expenses for LNG consumers who select to use the environmentally friendly fuel. Logistic costs have therefore been a barrier for rapid implementation of LNG in industry and shipping.
