Alaska firm contracts Russian ice-class tanker to bring in fuel to west region

Anchorage (Platts)--6Dec2011/539 am EST/1039 GMT

An Alaska-based fuel company will bring in a Russian tanker with ice-navigation capabilities to deliver 1.5 million gallons of fuel to Nome, after a winter storm prevented fuel barges from reaching the coastal community of about 3,600 in Western Alaska in November, the company said Monday.

Sitnasuak Native Corporation of Nome, the local fuel distributor, signed a contract with Alaska-based Vitus Marine to deliver the fuel, which is scheduled for late December, SNC chairman, Jason Evans, said in a statement. The fuel, comprising of home heating oil, unleaded gasoline and diesel fuel, will replace the 1.6 million gallons that were scheduled to be delivered by barge this fall but which never arrived.

The vessel contracted to make the delivery is certified to travel through 4 feet of ice and recently traveled through 5 feet of ice for extended distances while delivering fuel to communities in the Russian Far East, according to Evans. "If successful, this planned voyage will mark the first time that petroleum products have been delivered by sea to a Western Alaskan community in winter."

The transportation cost will be substantially lower than the cost of the standard winter delivery method using a DC-6 air tanker, Evans said.

"We looked at all available winter transportation options," he said. "[We] began discussions with the operator of the fall fuel barge and then expanded discussions to a number of different marine transportation companies. The option that SNC selected was deemed to be the lowest cost, most practical option," he added.

SNC is the Native village corporation for Nome and is owned by 2,400 Inupiat Eskimos who either live in Nome or who have family ties to Nome.

Vitus Marine is a marine services company providing fuel and freight to customers in several rural regions of western Alaska, with both domestic US and Russian supply.

--Tim Bradner, newsdesk@platts.com

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