Utkilen invests $131mn to bunker ships with LNG

Norway-based chemicals tanker supplier Utkilen will invest €125mn ($131mn) in installing LNG bunkering capabilities on four of its existing vessels, Utkilen said June 9.

The funds will also go to building four new vessels powered by a range of fuels, including LNG, gasoil, methanol and ammonia. 

The LNG bunkering upgrades will be carried out this year, while the newbuilds should arrive 2024 from the Icdas yard in Turkey. Utkilen believes it is the right time for green investments into LNG fuels, though other low-carbon markets are still to mature.

Siri-Anne Mjatvedt, CEO of Utkilen, said: "We have owners who invest long-term. In a time of great uncertainty in relation to future green technology, we chose to make large investments that will considerably reduce our carbon footprint already in 2022.

"There is currently a lot of talk about hydrogen and ammonia, but for us, who transport chemicals primarily in northern Europe, this technology is not ready yet. We choose to focus on accessible, eco-friendly, and flexible technology."