A dramatic fall in prices has meant that two of Himalaya Shipping’s bulk carriers have been able to bunker with LNG marine fuel for the first time.
The Oslo-listed shipowner on Wednesday said its 210,000-dwt, dual-fuel newcastlemaxes Mount Norefjell and Mount Matterhorn (both built 2023) have loaded LNG bunkers in Singapore within the past few days.
LNG prices were $472 per tonne on Monday, adjusted for calorific values, according to Himalaya. This compares with $537 per tonne for heavy fuel oil and $610 per tonne for very low-sulphur fuel oil (VLSFO).
Chief executive Herman Billung said he was pleased to see it.
“Both the environmental and economic benefit of running on LNG makes us confident in our choice to invest in dual-fuel engines. The high LNG prices seen in the wake of the Russia-Ukraine conflict seem to be normalising, and we believe, over time, LNG prices will trade at a discount to oil.
“Of the around 2,000 capesize+ dry-bulk ships in the world, less than 2% can run on LNG, hence, Himalaya Shipping is well positioned to benefit from the environmental regulations being introduced.”
Mount Matterhorn last month began a 32- to 38-month contract to Mercuria Shipping, which is responsible for deciding on the fuel choice. The vessel is currently loading iron ore at Port Hedland, Australia for an unnamed contract partner, a source told TradeWinds.
Running on LNG marine fuel can cut CO2 emissions by up to 43% compared to a conventional capesize bulker, according to Himalaya.
Himalaya has taken delivery of five vessels and still has another seven newbuildings to come in the series, which are being constructed at the New Times Shipyard in China.
Billung is also chief executive of newcastlemax owner 2020 Bulkers, which was also founded and backed by Tor Olav Troim and in which Koch Logistics is a major shareholder. Six of 2020 Bulkers’ 10 dual-fuel newcastlemaxes are on charter to Koch.
Troim appears to have opted for dual-fuel vessels able to run on LNG again in the past week. His company Magni Partners was last week said to be poised to order to six LNG dual-fuelled VLCCs from China’s New Times Shipbuilding.
This story has been updated since its original publication to reflect the fact that the Mount Matterhorn is on long-term charter to Mercuria Shipping, not Koch Logistics as stated previously.
