Vard Holdings will build two LNG-powered passenger ferries for Norway’s Torghatten Nord.

The shipbuilder has signed a NOK 600m ($70m) contract for the duo, due for delivery in the third and fourth quarter of 2018.

Roy Reite, chief executive of Vard, said: “Vard has long experience in building LNG-powered and dual fuel vessels.

“We delivered the world’s first LNG-powered car and passenger ferry back in 2000 and have delivered a broad range of ships using this innovative technology since, including offshore vessels, ferries and a fish feed carrier.”

The two ferries will have total capacity of 550 passengers and 180 cars with a speed of around 18 knots.

Romania-based Vard Braila will build the hulls of the ships, which will be equipped with hybrid gas-electric propulsion with battery systems to reduce fuel consumption and emissions.

Vard is a traditional builder of offshore vessels but has diversified its activities and broken into the cruise market.

Torghatten, which controls a fleet of around 50 ships, will deploy the LNG-powered ferries on the Halhjem-Sandvikvag route under a five-year deal with the Norwegian government.