SHELL SIGNS CHARTERS FOR 10 x LNG-FUELLED VLCCS

Shell has signed separate agreements for four VLCCs with Advantage Tankers, and three apiece with AET and International Seaways. The vessels will be on charter to Shell for seven years.

The investment by Shell represents the latest stage in the company’s investment in LNG as a fuel for its fleet. The energy major expects to lift the proportion of its long-term chartered crude tankers running on LNG to 50% in 2023.

The company’s long-term chartered fleet will have 14 LNG-fuelled vessels in service by the end of 2021. Shell noted that the choice of main engines and the vessel design mean the VLCCs will have the lowest possible methane slip, while the ships will deliver a 20% reduction in fuel consumption compared to eco VLCCs.

“It is imperative that the shipping sector immediately employs the cleanest fuels available. Today and for the foreseeable future, LNG is the choice for new builds to ensure we are not adding heavier emitters into the global fleet while we work hard at developing zero-emissions fuels,” said Grahaeme Henderson, Global Head of Shell Shipping & Maritime. “There is real urgency to tackle emissions from this sector and adopting LNG while developing zero-emissions fuels options, will make a significant difference to cumulative emissions.

This order is expected to bring the total global dual fuel LNG fleet to 475. Shell 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, the number of LNG-fuelled vessels on the water is expected to double, lifting marine LNG demand to around 3.6 million tonnes. To meet the demand, 45 bunker vessels are expected to be in service.