Himalaya Shipping completes first LNG bunkering for its newbuilds

Two of its newbuild vessels recently bunkered LNG for the first time in Singapore.

PHOTO: Mount Norefjell. Himalaya Shipping

The two 210,000 dwt dual-fuel Newcastlemax vessels, Mount Norefjell and Mount Matterhorn, have been bunkered with LNG in Singapore in recent days, the Bermuda-based shipowner says.

LNG bunker prices in most global ports have become cheaper than VLSFO and other marine fuel grades in recent weeks. This has made LNG bunkering more favourable for LNG-powered ships. On 31 July, Singapore's LNG bunker price was $472/mt, compared to $537/mt for HSFO, and $610/mt for VLSFO.

LNG can reduce carbon dioxide (CO2) emissions by 43% compared to conventional-fuel-powered capsized bulkers, Himalaya Shipping claims. But its methane emissions can be 36 times more potent as a greenhouse gas (GHG) compared to CO2 over a century, according to a World Bank study.

“The high LNG prices seen in the wake of the Russia-Ukraine conflict seem to be normalising, and we believe, over time, LNG prices will trade at a discount to oil,” Himalaya Shipping's chief executive Herman Billung says.

The cooldown in LNG prices could encourage more LNG vessel orders, while the current dual-fuel LNG fleet capable of burning LNG could use it more often than VLSFO or other conventional fuel oils, a trader says.

LNG has been gaining popularity among shipowners. The global LNG-fuelled fleet comprises 411 vessels, with another 132 expected to join this year, classification society DNV data shows.

By Debarati Bhattacharjee

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