Nauticor Acquires World's Biggest LNG Bunkering Ship

Laxman Pai
Friday, May 3, 2019

AB Klaipedos nafta (KN), the operator of oil products and liquefied natural gas (LNG) terminals, and the German company Nauticor GmbH & Co. have agreed on the sale of KN’s 10% stake in the charter contract of Kairos, the world’s largest LNG bunker supply vessel to Nauticor.

This leaves the world's biggest LNG bunkering vessel at Nauticor's disposal. The transfer shall become effective as of 30 September 2019, said a press release.

World’s largest LNG bunker supply vessel Kairos started operations in Q4/2019. Kairos, owned by Babcock Schulte Energy, is charterd by Blue LNG, a joint venture between Nauticor (90%) and KN (10%). The joint venture partners decided to sell transfer KN’s share in Blue LNG to Nauticor. The transfer shall become effective as of September 30 th, 2019.
 
In the Port of Klaipėda, the 117-meter-long vessel, which can carry up to 7.5 thousand m3 of LNG in its two tanks, is used for reloading of LNG from Klaipėda terminal to the LNG Reloading Station situated next to the gates of the port of Klaipėda.

Strategic rationale behind the transaction is to allow Nauticor and KN to optimize each parties operations.

Mindaugas Jusius, CEO of KN, says that several years ago when the agreement on partnership to charter the vessel Kairos was concluded, there was a lack of LNG transportation  services in the market.
 
“Therefore, we decided to become charterers of one of such vessels. At that time, it was the only possibility for KN to assure the full LNG supply chain for its customers. There have been new possibilities for LNG transportation emerging in the region recently. This allows us to assure the LNG supply to our customers by using the services of diverse LNG transportation vessels in the region,” says Jusius and adds that this decision will bring positive economic benefit for the company.

Nauticor CEO Mahinde Abeynaike states: “By having 100% control over Kairos, we will be able to optimize our LNG bunker scheduling schemes and fully focus on our core business. We are looking forward to working closely with KN also in the future to further strengthen the Baltic Sea LNG small scale supply infrastructure. This will be conducted outside today’s joint venture structure and therefore allow both parties to act in a more flexible way.”

The head of KN estimates that there are 7 vessels currently providing LNG transportation services in region of the Baltic and Northern Seas, and there are two more vessels under construction that are planned to be launched before the middle of this year.
 
“The emergence of new LNG transportation and bunker vessels enhances the competitiveness and accessibility of the LNG market for the region. This assures more favourable conditions for our company to utilise the LNG infrastructure in Klaipėda in a more efficient way. The possibility to bunker LNG-powered vessels from the LNG Reloading Station and loading small-scale cargoes to vessels and semitrailers assures the extensive LNG supply chain across the whole region thus creating added value for Lithuania,” notes Jusius.

Categories: Ship Sales LNG Mergers & Acquisitions Bunkering

Related Stories

INEOS Wraps Up Acquisition of CNOOC’s US Oil and Gas Assets

Woodside to Shed Some Trinidad and Tobago Assets for $206M

Argentina YPF to Shed Offshore Exploration Projects

Shell Hires Noble’s Drillship for Work in Southeast Asia

Japan and South Korea Look to Partner Up with US for Alaska Pipeline

Shell Predicts 60% Rise in LNG Demand by 2040 with Asia Leading the Way

Europe's Gas Uncertainty Help Drive Asian LNG Spot Prices Higher

The Five Trends Driving Offshore Oil & Gas in 2025

ABS Approves Hanwha Ocean’s FPSO Design

OPEC+ Passes on Oil Output Increase, Weighs the "Trump Effect"

Current News

INEOS Wraps Up Acquisition of CNOOC’s US Oil and Gas Assets

Fire at Petronas Gas Pipeline in Malaysia Sends 63 to Hospital

Japan’s ENEOS Xplora, PVEP Ink Deal for Vietnam Offshore Block

CNOOC Makes Major Oil and Gas Discovery in South China Sea

Valeura’s Assets in Gulf of Thailand Remain Operational After Earthquake

Op-Ed: Kazakhstan’s National O&G Firm Positioning Itself as Global Energy Player

Woodside to Shed Some Trinidad and Tobago Assets for $206M

CNOOC Sees 11% Profit Growth in 2024 Driven by Record Oil Production

‘Ultra-Mega’ Offshore Deal for L&T at QatarEnergy LNG’s North Field Gas Scheme

Keel Laying for Wind Flyer Trimaran Crew Boat

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com