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Bergen-based shipping company CRYO Shipping AS revealed plans to establish seaborne LNG transportation services in Northern Norway, becoming the first company to offer LNG infrastructure solutions in the northernmost counties in Norway.

As informed, the company intends to solve challenges associated with LNG infrastructure and logistics by establishing short-sea shipping services for the transport of LNG in Northern Norway in order for natural-gas powered ships and other industry players to finally have available LNG supply in a “cost-effective, environmentally-friendly and socio-economic way”.

Distribution of LNG in the northernmost counties in Norway, Nordland, Troms and Finnmark, is currently carried out solely by land transport.

Transport solutions that accelerate the green shift have high priority for Norwegian authorities, and it is important to ensure short-sea shipping is competitive in order to increase freight carried at sea, according to CRYO Shipping.

Norwegian Coastal Administration has established grant scheme with the aim that more cargo is transferred from road to sea due to environmental and socio-economic benefits. In line with this scheme, the administration has awarded EUR 1 million (around USD 1.2 million) in grants to CRYO Shipping to establish the LNG trade lane.

“We are very proud of the positive market acceptance we have received for our planned shipping services in Northern Norway, and are very grateful for the support granted by the Coastal Administration. This is a valuable contribution to becoming the first company to establish a sea-based LNG supply chain in Northern Norway, thus ensuring transport of LNG is carried out in an environmentally friendly and socio economic way. We … expect that this will be the foundation for even more Norwegian companies and ships to be able to use LNG as fuel,” Nicholai H. Olsen, Managing Director of CRYO Shipping, commented.

“Currently, we (CRYO) are working to commercialize a unique concept that can supply LNG to land-based industry as well as bunkering ships in an efficient and cheaper way compared to today’s existing solutions,” Olsen added.

LNG is an environmentally friendly fuel that is the most realistic solution for rapidly reducing global and local emissions of particles, sulfur oxides, carbon dioxide and nitrogen dioxide. There are large deposits of natural gas in the world, and the commodity is initially very reasonably priced. However, the current lack of customized logistics and infrastructure solutions results in unnecessary expenses for LNG consumers who select to use the environmentally friendly fuel. Logistic costs have therefore been a barrier for rapid implementation of LNG in industry and shipping.