SABIC Orders Two LNG Tankers

Saudi Basic Industries Corporation (SABIC) has commissioned  two sea-going gas tankers powered by liquefied natural gas (LNG) to transport its olefins products.

The intended purchase comes ahead of a European Union directive to drastically reduce sulphur emissions from vessels operating in the North Sea by 2015.

Switching to alternative fuels for ships, such as LNG, which is far more environment-friendly than traditional fuel oils is one of the solutions identified to meet the EU's demands.

SABIC’s two gas carriers will be used to transport olefins from a major plant on Teesside, England, to ports in North-West Europe and Scandinavia. SABIC is the first chemical company in the world to order gas carriers running on LNG.

“SABIC feels a strong sense of responsibility towards sustainability and the environment,” says Michel Wintraecken of SABIC. “This is why we have contracted Dutch company Anthony Veder for the use of two new LNG-powered gas carriers."

Mr Wintraecken said he expected to take delivery of the tankers in 2012. “We believe this initiative is the right thing for SABIC to do both from an environmental point of view."

Ships powered by LNG produce no sulphur emissions at all. In addition, carbon dioxide emissions are up to 20% less than with fuel oil and NOx emissions are almost 90% less.