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Skangas has entered into an agreement to provide gas fuel to ESL Shipping's (ESL) two LNG-powered bulk carrier newbuilds. The new vessels are due to start operating during the first half of 2018.

The first of the two vessels was named Viikki in June 2017, honouring the shipping firm's tradition of naming its ships after places in Helsinki.

As previously reported, the new ice-class 1A vessels are set to be two of the first large LNG-fuelled bulk carriers in the world - together with another LNG-powered bulker being built at the Hyundai Mipo Dockyard in South Korea.

The ESL ships will be used for sea transportation within the Baltic Sea and the North Sea.

As part of the agreement, Skangas is to also supply liquefied biogas (LBG) to ESL Shipping. LBG and LNG are interchangeable as fuel and thus the same LNG supply chain can be used.

"This agreement is a milestone for Skangas. MS Viikki will be the first vessel that we will serve from the new LNG terminal in Tornio," explained Kimmo Rahkamo, CEO of Skangas. "There will be more to come."

Mikki Koskinen, Managing Director of ESL Shipping, remarked: "Our combination of latest hull design and numerous other energy-saving measures together with usage of LNG as fuel will reduce the carbon dioxide emissions per ton of cargo transported by more than 50 percent in comparison to present generation of vessels. This agreement also helps us to lower our operational costs."