Shell will charter six newbuild LNG ships with Knutsen LNG, Pan Ocean Co and investors advised by JP Morgan Asset Management
The 174,000-m3 newbuildings will be built by Hyundai Heavy Industries and Hyundai Samho Heavy Industries.
“These ships will be 35% more efficient than required by the energy efficiency design index and 20% more than required by the annual efficiency ratio, delivering significant emissions reductions for our time-charter fleet,” said Shell global head of shipping and maritime Grahaeme Henderson.
As part of Shell’s time-charter fleet, each ship’s performance will be optimised by analysing real-time data from the ships and deploying Shell’s proprietary draft and trim optimisation software JAWS, to enable further efficiencies and emissions reductions.
As with the other ships of this class ordered by Shell, they will incorporate the latest industry safety practices, including MEG4-compliant moorings. They will all be equipped with dual-fuel X-DF engines, boil-off management plants, air-lubrication systems and shaft generators for auxiliary power, along with optimised hull and design speed.
With the new order the number of newbuildings sit at 24. Previously, Shell announced long-term charters for eight ships of the same class in December 2019, six in August 2020, and four in December 2020. Delivery of the ships will commence from 2023.
Shell Eastern Trading has also signed a five-year agreement with PetroChina International (PCI) to supply carbon-neutral LNG. For each cargo delivered under this agreement, PetroChina and Shell will co-operate to offset lifecycle CO2-equivalent emissions generated across the LNG value chain, using high-quality carbon credits from nature-based projects.
Shell said “Each carbon credit is subject to a third-party verification process and represents the avoidance or removal of 1 tonne of CO2 equivalent.”
PCI is a wholly owned subsidiary of PetroChina Company Limited, China’s largest oil and gas producer and distributor. China is to become the world’s second-largest LNG importer. In 2020 Chinese LNG imports reached 67M tonnes which is expected to nearly double by 2040.
PCI executive chairman Tian Jinghui said “In pursuit of the carbon neutrality goal, PetroChina is committed to a green and low-carbon development strategy. We are pleased to partner with Shell, through this co-operation in carbon-neutral LNG, in realising the long-term objective of net-zero emissions for the energy industry.”
Commenting on the agreement, Shell executive vice president Steve Hill added “Since delivering the world’s first carbon-neutral LNG cargoes in 2019, we have collaborated with producers and buyers across the globe for 13 other carbon-neutral LNG cargoes. This first-term deal is an important step in scaling up the market for carbon-neutral LNG and we are very grateful to our valued partner PetroChina for their collaboration in enabling this industry milestone.”
Riviera Maritime Media’s LNG Shipping & Terminals Webinar Week is being held 3 August 2021 – use this link for more details and to register