Bunker Holding to Build Danish LNG Bunker Facility

By Curious

Bunker Holding Group (Bunking Holding) Tuesday (Feb 9) announced it will build Denmark's first liquefied natural gas (LNG) production facility in the Port of Frederikshavn by 2017.

To date vessels in Denmark have been provided with LNG delivered by tanker from Rotterdam; the Frederikshavn facility will produce LNG for the maritime sector, covering Denmark and Sweden.

Bunker Holding to Build Danish LNG Bunker Facility

Port of Frederikshavn Image: billeje.info

“We expect growing demand for LNG in the coming years. LNG is part of the future and it is important for us to be at the forefront,” said Peter Zachariassen, Head of Physical at Bunker Holding.

The plant is reportedly being built at a cost of at least $33 million, with construction expected to start this fall and last 18 months.

Bunker Holding will make the investment through its subsidiary Unioil Supply A/S, which will be responsible for the commercial operations of the project.

Kosan Crisplant A/S (Kosan Crisplant) will design and deliver the production plant. Kosan Crisplant says it has introduced into the market a fully automated emission-free plant for bunkering LNG for ships. They will also supply the liquefaction plant.

"With 65 years in the gas industry ... we are pleased to get involved in this exciting project in Denmark,” said Bo Larsen, Commercial Director at Kosan Crisplant.

“Producing LNG or LBG from the natural gas grid is a new area of growth for us, and being allowed to organise a project with the strongest players in their respective fields is a dream situation for an engineering firm like ours,” he said.

“We look forward to making a first-class project that...[putting] North Jutland and Frederikshavn on the world map,” said Larsen.

The project is expected to increase traffic in the Port of Frederikshavn.

Jens P. Buchhave, Managing Director, Terntank Rederi A/S, a company that has already invested in LNG-powered ships, commented: “Terntank takes a very positive approach to this initiative in the Port of Frederikshavn.

"For quite some time now, we have been calling for some of the major bunker suppliers to take the initiative to provide LNG, and this new set-up fits perfectly into our strategy where we have already placed orders for four ships that will be fueled by LNG."

Precise ownership stakes among the developers have yet to be determined, according to local media reports.

In December of 2014 Ship & Bunker reported that Bunker Holding would enter the physical supply market through the creation of Unioil Supply.

Source: Ship and Bunker