Shell pens long-term charters for 14 LNG-fuelled tankers

Illustration; Image courtesy of Teekay

The Hague-based LNG giant Shell has agreed to charter a fleet of new liquefied natural gas-fuelled crude oil and products tankers in order to decarbonize shipping.

Shell’s subsidiary, Shell Tankers Singapore, agreed a long-term deal to charter a fleet of ten LNG dual-fuel Aframax crude oil tankers from Sinokor Petrochemical.

The vessels are currently under construction at Samsung Heavy’s yard in South Korea and are scheduled for delivery in 2021.

Separately, Shell agreed long-term charters for four new LNG dual-fuel oil products tankers from institutional investors advised by J.P. Morgan, with delivery of the vessels also expected from 2021.

Mark Quartermain, Shell’s VP for crude trading and supply, said: “LNG is already a commercially competitive way to reduce emissions from ships, including those delivering oil to our customers. This is an important step in Shell’s wider drive to help decarbonize the shipping sector, both as a leading supplier and user of LNG.

The International Maritime Organization has set a goal to reduce total annual greenhouse gas emissions from shipping by at least 50 percent by 2050, compared to 2008. Compared to some marine fuels, LNG can cut greenhouse gas emissions from ships by up to 21 percent, according to an emissions study by Thinkstep.

LNG is also virtually free of sulfur and particulates, enabling ship operators to significantly reduce their local emissions.

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