Norway's Knutsen OAS Shipping is entering a new segment in the LNG market with an order for a 5,000-cbm LNG carrier and bunker vessel.
The ship will be used for small-scale distribution of gas and delivery of LNG to larger vessels as fuel.
Trygve Seglem-controlled Knutsen OAS in Haugesund is ordering the vessel as a first step in in co-operation with Enagas subsidiary Scale Gas.
The vessel will be built at the Spanish shipyard group Astilleros Armon with delivery in 2022, according to the Norwegian financial daily Finansavisen.
Then newspaper reported that Knutsen OAS is in the process of concluding a 10-year charter contract for the newbuilding. Shell is believed to be the likely charterer.
The vessel will most likely primarily be used for bunkering services in the Barcelona area.
The ship is expected to cost of some €35m ($41.3m).
Knutsen OAS finance director Geir Tore Henriksen confirmed the order and said the company expects the newbuilding programme to expand further.
The Norwegian firm is a major LNG player with 14 ships and eight newbuildings under construction.
Knutsen is typically ordering its LNG vessels against long-term employment.
The Norwegian shipowner already has an extensive relation with Shell, which will charter six 174,000-cbm newbuildings on seven-year contracts, with options to extend for up to six more years.
