Hanwha Ocean has been contracted to build a new LNG vessel for Edison, set to have a capacity of 174,000 cubic meters. The vessel will be constructed in Geoje, South Korea, following an agreement made between Edison and Knutsen OAS Shipping in Norway.
This long-term charter deal between Edison and Knutsen is aimed at boosting Edison’s LNG portfolio and advancing its strategy to diversify its energy sources. The new LNG carrier is expected to support Knutsen OAS Shipping’s operations starting in 2028.
Fabio Dubini, Executive Vice President of Gas & Power Portfolio Management & Optimization at Edison, emphasized that this partnership aligns with their goal to enhance collaborations with trusted suppliers while expanding Edison’s global presence in the LNG supply chain. He noted that the new vessel would be crucial for managing the increasing LNG volumes Edison expects to handle in the coming years, ensuring flexibility and responsiveness to market demands. This move is also expected to contribute to the broader goals of Italian energy security.
The new ship will be integrated into Edison’s fleet for the management and supply of LNG cargoes, particularly under long-term free on board (FOB) contracts. This type of contract is anticipated to grow significantly, as Edison shifts toward a cleaner energy mix. Edison has previously secured contracts for U.S. LNG imports, including a major 2017 deal, as well as a recent purchase agreement for 0.7 million tonnes per year starting in 2028.
The vessel will feature four advanced membrane tanks equipped with an innovative insulation system designed to minimize boil-off gas, ensuring efficient transport of LNG. The ship will also include a dual-fuel propulsion system, enabling it to run on both LNG and marine diesel, as well as a full reliquefaction system that recovers boil-off gas, optimizing fuel consumption and emissions. These features are designed to meet the most stringent environmental standards, including the latest IMO regulations and European FuelEU Maritime rules.
This deal builds on the ongoing collaboration between Edison and Knutsen OAS Shipping, which began in 2018 with the delivery of a 30,000-cubic-meter capacity LNG vessel, Ravenna Knutsen. This earlier vessel, which has been used to supply sustainable LNG to small-scale depots and provide bunkering services, demonstrated significant operational flexibility.
Edison currently imports around 14 billion cubic meters of natural gas annually to Italy from countries like Qatar, Libya, Algeria, Azerbaijan, and the United States, meeting 23% of the country’s domestic demand. The company has also recently partnered with CMA CGM to complete Italy’s first ship-to-ship LNG bunkering for a containership.
