Image credit: Exmar

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Belgium-based Exmar reports that two of its newbuild very large gas carriers (VLGCs) will be built to run on liquefied petroleum gas (LPG).

Both vessels are to be constructed by Hanjin Heavy Industries & Construction in Subic Bay, Philippines, and are due for delivery within the third quarter of 2020.

Exmar has contracted the vessels to serve the long-term LPG transportation commitments of energy firm Statoil - a company that has previously stated that it looks favourably on fuel-saving vessels in the award of new contracts.

The development is the result of Statoil's commitment to improve the sustainability performance of its activities and a longstanding cooperation between Exmar and Lloyds Register as classification society and MAN Diesel & Turbo as engine producer to develop an efficient LPG fuel system that allows part of the cargo to be used for the vessels' propulsion.

"Its superior environmental benefits are in the fact that LPG as a fuel does not contain any sulphur and substantially reduces CO2 and NOx emissions whereas particulate matters are almost halved as compared to a fuel-only engine," Exmar explained.

Last year, Statoil also signed an LPG bunkering agreement with LPG vessel specialist Astomos, where both firms agreed to share information and look into working together on LPG bunkering projects, including LPG-fuelled vessels and the development of global supply sites for the supply of LPG as a fuel to ships.