July 03, 2024 [Offshore Energy]- In a bid to strengthen its LNG and bioLNG offering, Vitol International Shipping, a shipping company of energy and commodities group Vitol, has secured three LNG bunkering vessels via a charter agreement with UK-based company Avenir LNG and an order at CIMC Sinopacific Offshore & Engineering (CIMC SOE) shipyard in Nantong, China.
Vitol and Avenir LNG’s time charter agreement covers Avenir’s first newbuild 20,000 cbm LNG bunker vessel. The time charter to Vitol will commence at delivery from the shipyard in China in 2026 and will serve a period of seven years with options to extend up to ten years.
To remind, Avenir LNG ordered two 20,000 cbm LNG bunker vessels at China’s Nantong CIMC Sinopacific Offshore & Engineering in April 2024.
Jonathan Quinn, Managing Director of Avenir LNG, commented: “We are pleased to be partnering with Vitol to support their LNG Bunkering business. This new charter agreement demonstrates a continued strengthening we are seeing in the market, and that Avenir continues to play a pivotal role in providing modern and efficient vessels to enable the growth of LNG as a marine fuel.
“We look forward starting this long-term relationship with Vitol who we will serve with the same safe, reliable and operationally excellent service that our customers have come to expect from Avenir.”
Vitol said it had also ordered one 12,500 cubic meter and one 20,000 cbm LNG bunker vessel at CIMC SOE shipyard.
The newly-ordered vessels are scheduled for delivery in the fourth quarter of 2026 and the third quarter of 2027 respectively.
Pablo Galante Escobar, Head of LNG, EMEA gas & power at Vitol, added: “Shipowners worldwide are looking to reduce their emissions. We are delighted to strengthen our offering to them by investing in LNG/bioLNG bunkering, thereby increasing their options.”
Last year, Vitol traded over 17 million tonnes of LNG worldwide. The company has been investing in bio-LNG infrastructure through its subsidiary ViGo bioenergy and also provides bunker fuels, through its subsidiary Vitol Bunkers.
Earlier this year, Vitol Bunkers put into operation its newbuild specialized bunker barge, the Marine Future, to complete the first delivery of B30 biofuel blend in Singapore. The vessel is part of the company’s plans to expand the supply of biofuels in Asia. Several more bunker barges are expected to be delivered throughout 2024. Depending on demand, these vessels could also be upgraded to supply methanol.
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