Havila Kystruten AS Enhances LNG Procurement Strategy
Havila Kystruten AS is making significant strides in optimizing its LNG procurement process. The company has successfully renegotiated its LNG procurement agreement, allowing them to acquire approximately one-third of their LNG volume through a new supplier located in Northern Norway, which will be in effect until 2030. This new arrangement involves sourcing LNG from the production facility situated at Melkøya, near Hammerfest.
Introduction of a Dual-Supplier Model
The restructured agreement features a dual-supplier model that is designed to provide greater flexibility and security in fuel sourcing. Notably, this model links part of the LNG pricing to gasoil, resulting in a comprehensive approach to fuel price indexation. Specifically, two-thirds of the pricing will be tied to the Title Transfer Facility (TTF), while one-third will be linked to gasoil. This innovative approach is anticipated to mitigate the risks associated with fuel price volatility and enhance cost predictability for the company.
Expected Fuel Cost Savings
In conjunction with the updated procurement strategy, Havila Kystruten AS is implementing planned improvements to bunkering logistics in Northern Norway. These enhancements, combined with a more favorable pricing formula compared to the existing arrangement, prompt the company to predict annual fuel cost savings of over 10%, based on the current forward pricing in the market. The benefits of this new procurement model are expected to be realized starting in the fourth quarter of 2025.
Strengthening Supply Resilience
The introduction of this revamped procurement structure is not merely a financial strategy; it also reinforces the resilience of Havila Kystruten’s fuel supply chain. Through this initiative, the company remains committed to optimizing costs while ensuring a reliable and secure supply of LNG, which is vital for their operations.
Company Leadership Contacts
For any inquiries, the company has provided contacts for its leadership: Chief Executive Officer, Bent Martini can be reached at +47 905 99 650, and Chief Financial Officer, Aleksander Røynesdal is available at +47 413 18 114.
Frequently Asked Questions
What changes were made to Havila Kystruten's LNG procurement?
The company has renegotiated its LNG procurement agreement to include sourcing from a new supplier in Northern Norway, introducing a dual-supplier model.
How does the new pricing model work?
Two-thirds of the LNG pricing will be linked to TTF, while one-third will be tied to gasoil, enhancing price indexation diversity.
What are the expected cost savings?
Havila Kystruten anticipates annual fuel cost savings exceeding 10% based on current forward pricing.
When will the new arrangement take effect?
The effects of the new procurement strategy are expected to be noticeable from the fourth quarter of 2025 onwards.
Who can I contact for more information?
The Chief Executive Officer, Bent Martini, and Chief Financial Officer, Aleksander Røynesdal are available for contacts regarding inquiries.
