Norway’s Fjord Line has been forced to spend money adding dual-fuel capability to its increasingly expensive LNG-powered ships.
The ropax company said the rising price of gas has led to a “non-sustainable financial situation”.
It has decided to “rebuild” the 32,500-gt Stavangerfjord (built 2013) and Bergensfjord (built 2014) to allow them to also run on marine gasoil (MGO).
“After two years of a global pandemic and government-imposed travel restrictions, Fjord Line had the best-ever high-season revenue-wise in 2022,” the company stressed.
But it blamed the energy crisis, caused by the Russian invasion of Ukraine, for “extraordinary volatility and significant price increases in LNG”.
These rises have been far higher than for traditional and less sustainable fuels.
In addition, the company pointed out it receives no state financial aid for green fuel.
“This has led to a dramatic increase in the energy costs for Fjord Line’s two LNG-operated ships, and significantly above a financially sustainable level,” it added.
Since early autumn, sailings have been reduced and ship speeds decreased.
“This is of course not the way Fjord Line intends to operate our routes or the desired customer offering,” the company said.
“However, adjustments to our route operations were necessary as a consequence of the extraordinarily high fuel costs, especially on LNG.”
A sad day
Many other owners have been operating dual-fuel ships on conventional bunkers rather than LNG due to the cost.
Fjord Line sees itself as a pioneer in LNG-fuelled vessel operations.
“We are saddened by the need for the conversion towards the use of MGO, despite MGO having … significant reduced emissions of sulphur than traditional fuel such as heavy fuel oil,” said chief executive Brian Thorsted Hansen.
“The conversion is, however, critical to maintain our customer offering, secure workplaces and to secure the continued development of Fjord Line.”
Work on the Stavangerfjord will start this month at Fosen Yard in Norway and will be completed by the end of May.
The Bergensfjord will be converted between February and June.
New engines will be delivered by Wartsila.
Fjord Line has concluded a refinancing for an undisclosed amount as part of the project.
