Russia's LNG Gorskaya LLC has signed an agreement with the Passenger Port of St. Petersburg's Marine Facade to develop LNG bunkering infrastructure for cruise ships and ferries, and will be ready to commence LNG bunkering at the port from January 1, 2018, the company told S&P Global Platts in an e-mailed statement.
The Passenger Port of Marine Facade, located on the alluvial areas of Vasilievsky Island, is the first and only port in the North-Western region of Russia and is also the largest specialized passenger port in the Baltic region.
The move towards LNG comes at a time when the gas is gaining more attention as a viable marine fuel option to meet stricter environmental regulations. Most LNG has no detectable sulfur, and so emissions are considerably lower than when using other marine fuels.
The document was signed by the CEO of Passenger Port St. Petersburg "Marine Facade", V. Kashirin, and the CEO of LNG Gorskaya LLC, K.Lyats on December 27, the company said Tuesday. "The document underlines [the] importance of execution of standards of the International Convention for the Prevention of Pollution from Ships (MARPOL)," it said.
LNG Gorskaya is currently developing a project, under which LNG will be produced on a non-self-propelled barge. It is designed to process 1.968 billion cubic meters of natural gas a year, which corresponds to the production of 1.26 million mt of LNG, the company said.
LNG Gorskaya plans to start up the project and also start selling LNG by December 2017.
In July, LNG Gorskaya said that it had been given a permit by the Federal Marine and River Transport Agency, Rosmorrechflot, to invest in the construction of an LNG port in Saint-Petersburg.