Edison shakes hands with Knutsen for new LNG vessel to be built by Hanwha Ocean

December 9, 2025, by Melisa Cavcic

Asian shipbuilder Hanwha Ocean will construct a new vessel for the transport of liquefied natural gas (LNG), with a capacity of 174,000 cubic meters at Geoje (Okpo), in South Korea, thanks to a deal Norway’s Edison made with shipowner Knutsen OAS Shipping.

Edison’s contract with Knutsen, signed in Norway, for the long-term charter of a new 174,000 cubic meter LNG vessel is expected to aid the growth of the LNG portfolio and the firm’s strategy of diversifying its sources. The newly built carrier is set to support the Norwegian player’s shipping activities from 2028.

Fabio Dubini, Executive Vice President of Gas & Power Portfolio Management & Optimisation at Edison, commented: “We are working to strengthen strategic partnerships with our long-standing suppliers and, at the same time, to increase our international presence in the LNG supply chain with the aim of ensuring diversification and operational flexibility in support of Italian energy security.

“The expansion of our fleet, thanks to our valuable collaboration with Knutsen OAS Shipping, will enable us to manage the growing volumes of LNG that will enter our portfolio in the coming years, increasing our ability to promptly adapt supply to the demands of international markets and customers, benefiting the system’s liquidity and competitiveness, as well as the energy transition targets.”

The ship will join Edison’s fleet for the management and supply of LNG cargoes under long-term free on board (FOB) contracts, a component that is poised to grow in the coming years, in line with the company’s transition strategy. The company, which claims to have been the first to open a stable supply channel from the United States under a 2017 agreement, revealed a second contract this year for the purchase of approximately 0.7 million tonnes per annum (mtpa) of LNG.

This is estimated to be equivalent to approximately 1 billion cubic meters per year, starting in 2028 for a period of up to 15 years from Shell International Trading Middle East Limited FZE. The new LNG carrier will be equipped with four latest-generation membrane tanks, featuring a high-efficiency insulation system designed to reduce boil-off, known as the natural evaporation of LNG inside the tanks, and ensure optimal performance during transport.

The vessel will be fitted with a dual-fuel propulsion system for LNG and marine diesel, shaft generators for more efficient use of on-board energy, and a full reliquefaction system, which allows for the complete recovery of boil-off gas, optimizing consumption and emissions.

According to Edison, the ship is designed to fully comply with the latest international environmental requirements, including International Maritime Organization (IMO) regulations, as well as the new European FuelEU Maritime and EU ETS regulations, allowing it to operate competitively and in perfect alignment with future environmental sustainability standards.

The agreement is said to further build on the partnership between Edison and Knutsen, as their collaboration began in 2018 with the construction of a 30,000 cubic meter capacity vessel, called Ravenna Knutsen, which is an LNG carrier with extreme operational flexibility used to supply the Corsini port in Ravenna with a small-scale depot dedicated to sustainable mobility and to refuel (bunkering) other ships with LNG.

The Norwegian firm claims that the ship’s configuration allows it to adapt to different types of storage facilities and vessels, which is why it has also been used to supply coastal regasification terminals during recent energy crises.

Edison currently imports approximately 14 billion cubic meters of natural gas per year into Italy, with import contracts from Qatar (6.4 billion cubic meters), Libya (4.4 billion cubic meters), Algeria (1 billion cubic meters), Azerbaijan (1 billion cubic meters) and the United States (1.4 billion cubic meters), meeting 23% of domestic demand.

Together with CMA CGM, the company recently finished the first ship-to-ship (STS) LNG bunkering of a containership in Italy.