Shell has long-term charter commitments for 14 LNG dual-fuel tankers in service by the end of 2021 and half of its tanker fleet will be LNG dual-fuel powered in 2023
Shell has signed agreements to charter 10 new crude tankers powered by dual-fuel liquefied natural gas (LNG) engines. Four of the very large crude carriers (VLCCs) have been chartered from Advantage Tankers, three from AET and three from International Seaways.
All 10 ships will be built in South Korea by DSME; the first will be operational from 2022 and will be on charter to Shell for seven years.
The main engines and vessel design chosen for the ships mean these tankers will have the lowest possible methane slip and highest fuel efficiency, including on average 20% less fuel consumption compared to eco VLCC vessels on the water.
Shell has stated it will continue to significantly invest in LNG for its long-term charter fleet with 14 vessels in service by the end of 2021.
This order is expected to bring the total global dual-fuel LNG fleet to 475 vessels, marking yet another important step on the predicted doubling of LNG-fuelled vessels on the water by 2023, as shipowners respond to customer calls to choose the cleanest technologies available today.
Shell Shipping & Maritime global head Grahaeme Henderson said “It is imperative that the shipping sector immediately employs the cleanest fuels available. Today and for the foreseeable future, LNG is the choice for newbuilds to ensure we are not adding heavier emitters into the global fleet while we work hard at developing zero-emissions fuels.”
He added, “This significant commitment will see Shell hit a new milestone for our fleet decarbonisation with an average of 50% of our crude tankers on time charter powered by dual-fuel LNG engines once in service. There is real urgency to tackle emissions from this sector and adopting LNG while developing zero-emissions fuel options will make a significant difference to cumulative emissions.”
Shell has invested heavily in LNG as a marine fuel and is rapidly making LNG available on global trading routes at major ports in Europe, Asia and North America to meet customer demand with tankers and the bulk and liner segments continuing to grow uptake. By 2023, marine LNG demand is expected to reach around 3.6M tonnes with 45 bunker vessels expected to be in service.
DSME president and chief executive Sung Geun Lee said “The vessels have been designed with state-of-the-art technologies and not only achieve a huge reduction in greenhouse gas emissions, but are also economically viable. They have a low fuel consumption with their dual-fuel LNG engines and will bring significant benefits to both the charterer and the shipowners over the long term.”