On the 15^th of November 2009 the I.M. Skaugen Group (IMSK) named the first ship in its new series of Multigas carriers. The 10,000 cbm sized vessel, named “Norgas Innovation”. The Multigas vessel will be used to transport the LNG directly industrial to end-users . End user markets include also the maritime fuel market, where LNG will replace bunker oils.

Small-scale LNG will enable industrial users and power plants in the stranded markets to switch from oil based processes and power generation to more cost efficient gas and with a significant reduction of CO2 and other emissions. The environmental impact of switching to gas is indisputable; 25-30% less CO2 emission , 80% less NOx and 100% reduction of both SOx and particulate matters. Environmental benefits would also be gained in maritime bunker markets. As legislation covering the shipping industry becomes tighter, emissions of sulphur dioxide (Sox) and nitrogen oxides (NOx) must be reduced and, eventually, this will also apply to CO2. The long term future of heavy fuel oil as bunkers is questionable, both in terms of dependency on oil and not at least with regards to emissions. Natural gas in contrast gives a far more environmentally friendly combustion and in addition there appear to be greater reserves available than oil. Thus natural gas in liquid form as marine bunkers has the potential to be the solution for the shipping industry to cope with its emission challenges in the years to come.

The flexibility inherent in the cargo-handling system enables the Multigas ships to move between the LNG, LPG and petrochemical gas trades as commercial circumstances dictate. However, it is the ability to handle LNG at cryogenic temperatures which makes these ships particularly notable. Skaugen is poised to play a pioneering role in the local and regional distribution of LNG at a time when the global LNG trade is growing strongly and the natural gas supply clain is being extended to provide remote communities with access to this clean-burning fossil fuel for the first time. Interest in both the Mini LNG concept and our Multigas newbuilding programme has grown strongly in recent years and we have no doubt that these vessels have a bright future in serving regional LNG distribution markets.

The Multigas ships are built to the classic semi-pressurized/fully refrigerated (semi-ref) gas carrier design. In addition to LNG, the vessels are able to carry a wide range of other liquefied gas cargoes, including ethylene, LPG and vinyl chloride monomer (VCM). Irrespective of the liquefied gas being carried, cargo boil-off gas on the Multigas ships will be reliquefied by specialist equipment onboard and returned to the cargo tanks. When LNG is being carried, an innovate Mini LNG plant will be utilized to reliquefy all natural gas boil-off. The Mini LNG plant’s patented and licensed technology was developed by Skaugen in cooperation with SINTEF Energy Research in Norway. This innovative vessel stands as a perfect example of the future and is aptly named Norgas Innovation.

2009 is the year when Norgas starts operation of the new multipurpose carriers (gas and chemical vessels – Wintergas) made by Skaugen Marine Construction (SMC) in China. The first vessel is named Norgas Pan was delivered in the beginning of 2009 .The second Wintergas Norgas Cathinka vessel is delivered in the middle of 2009. In addition, the first Norgas LNG/LPG/Ethylene vessel (Multigas) Norgas Innovation will be delivered in January 2010. This increases the Norgas fleet from 16 today and up to around 20 vessels in 2010, but we will also operate vessels with chemicals and with LNG. This makes 2009 with 3 new vessels coming into the fleet combined with a very challenging market and financial situation – to an exciting, but hard working year.