The energy crisis has led to extraordinary volatility and significant price increases in LNG – and the price increases have been far higher than for traditional and less sustainable energy sources at sea. In addition, Fjord Line receives no governmental financial energy-aid. This has led to a dramatically increase in the energy costs for Fjord Line’s two LNG-operated ships, and significantly above a financially sustainable level.

Since early Fall, the LNG-ship departures from Vestlandet in Norway, Denmark, and Langesund in Norway have been reduced as well as the crossing time has been increased. This is of course not the way Fjord Line intend to operate their routes or the desired customer offering. However, adjustments to the route operations were necessary as a consequence of the extraordinary high fuel costs especially on LNG. In addition, they have worked immensely hard to develop and evaluate long-term alternatives enabling a return to their ordinary route operation on the routes between Vestlandet in Norway and Denmark and the route between Langesund and Hirtshals. Fjord Line has now decided to rebuild the two LNG-ships STAVANGERFJORD and BERGENSFJORD from single-fuel LNG-engines to dual-fuel LNG/MGO-engines during Spring 2023.

The engine conversion enables the two LNG-ships to switch between LNG and MGO, which will ensure a financially sustainable operation until the LNG-price level is normalized. Fjord Line are saddened by the need for the conversion towards use of MGO, despite Marine Gas Oil having a significant reduced emissions of sulphur than traditional fuel such as HFO (Heavy Fuel Oil). The conversion is however critical to maintain their customer offering, secure workplaces, and to secure the continued development of Fjord Line, says CEO, Brian Thorsted Hansen.

Rebuilding of LNG-ships

Rebuilding of STAVANGERFJORD will start in January 2023 and will be finalized by the end of May 2023. BERGENSFJORD will be rebuilt during February to mid-June 2023. The routes affected by the rebuilding are Bergen – Stavanger – Hirtshals, and Hirtshals – Langesund. Fjord Line’s other routes Sandefjord – Strömstad, and Kristiansand – Hirtshals are not affected by the changes and will operate as normal. 

The ships are being rebuilt at Fosen Yard and the engines will be delivered by Wärtsilä.

Fjord Line has concluded a refinancing as part of the rebuilding of the two ships and due to the current energy crisis. A refinancing where the owners and lenders jointly have secured the continued development of Fjord Line’s position.

During the COVID-19 pandemic and the energy crisis the owners have contributed with new capital in the amount of NOK 500 million to Fjord Line.

As a result of the engine conversion plan, Fjord Line will not be able to maintain their customer offering on the routes Bergen – Stavanger – Hirtshals, and Hirtshals – Langesund during 8 February until 25 May 2023.

© Shippax