Monday, September 22, 2014

LNG Conversions For BC Ferries


Spirit of British Columbia

LNG Conversions for SPIRIT-CLASS VESSELS

S-Class conversions brings BC Ferries’ dual fuel fleet to five vessels

VICTORIA – BC Ferries plans to convert its two largest vessels, the Spirit of Vancouver Island and the Spirit of British Columbia, to dual fuel, as well as make modifications to the hull, in order to save approximately $9.2 million per year (in today’s dollars) over the remaining 27-year life cycle of the two vessels. The conversion is part of an application the company submitted today to the BC Ferries Commissioner for approval to proceed with mid-life upgrades of the vessels.

The plans come on the heels of a BC Ferries announcement in July 2014 to build three intermediate-class dual fuel vessels for delivery in the years 2016 to 2017. BC Ferries expects total savings from LNG for the five vessels to be approximately $12.0 million per year (in today’s dollars), based on current fuel price estimates, which will significantly reduce upward pressure on fares.

“We are well aware that fare affordability is a concern for our customers and operating on LNG, which is approximately 50 per cent cheaper than marine diesel, is a game changer for BC Ferries,” said Mike Corrigan, BC Ferries’ President and CEO. “We’ve been driving a culture of cost containment in many areas of our business without compromising safety and we are moving forward with LNG conversions, which will help us realize significant environmental benefits and enormous financial savings on our fuel bill.”

BC Ferries spent $126 million on fuel last fiscal year and the two Spirit-Class vessels consumed approximately 15 per cent of the fleet total. These vessels are the largest consumers of fuel in the BC Ferries fleet and the conversion will reduce their cost of fuel by approximately half.

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