Havila amends LNG fuel deal

Norwegian shipping firm Havila Voyages said it had entered into a renegotiated LNG procurement deal aimed at reducing costs and increasing flexibility.

According to a statement by Havila Voyages (Havila Kystruten), the new agreement allows the firm to purchase around one-third of its LNG fuel requirements directly from an alternative supplier in Northern Norway until the end of 2030.

Deliveries will come from the Equinor-operated LNG production plant at Melkoya, near Hammerfest, the shipping firm said.

The agreement means that Havila will have two suppliers of LNG, with a pricing model partially linked to gas oil.

Havila said two-thirds of the volume will remain price-indexed to the Dutch TTF, while one-third will follow gas oil prices.

This model reduces the risk of major price fluctuations and contributes to more predictable costs, it said.

Based on current forward prices, the expectation is that the new agreement will reduce Havila’s annual fuel costs by over 10 percent from the fourth quarter of 2025.

Havila did not provide further details regarding the contract or the suppliers.

Its four coastal cruise ships, Havila Pollux, Havila Polaris, Havila Capella, and Havila Castor, use LNG as fuel.

“We are strengthening the flexibility and resilience of our fuel supply, while ensuring a more predictable and competitive cost base by entering into this new agreement,” says Bent Martini, CEO of Havila Voyages.

“The market in which we purchase fuel sees significant fluctuations based on energy prices, so it is crucial to have multiple options. Improved bunkering solutions in Northern Norway, combined with a more favorable pricing model, mean we expect significant savings going forward aligned with our ongoing work to optimize operational costs,” Martini said.

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