Under the agreement, Shell will supply LNG for the world’s first LNG-powered cruise ships due to start sailing in northwest Europe and the Mediterranean in 2019. This will be the first time LNG in dual-fuel engines will be used in the cruise industry to power ships both in port and at sea.

LNG is a new alternative fuel for vessel and ship operators who are responding to sulphur and nitrogen oxide emissions regulations in Emission Control Areas (ECAs), and beyond.

Lauran Wetemans, Shell’s General Manager Downstream LNG, said: “We have been working closely with Carnival to get to this point in our commercial partnership. Working together from an early stage is critical in helping the transition to cleaner LNG cruising. This is a unique partnership that will contribute to a robust and reliable LNG fuel supply chain, along with opportunities for future growth.”

“We are committed to reducing our air emissions and improving air quality through various means, including LNG,” said Tom Strang, senior vice president of maritime affairs for Carnival Corporation. “We are proud to be on the forefront of advancing LNG as a fuel source for the cruise industry and creating a new model for powering next-generation cruise ships.”

Under the terms of the agreement, one Carnival cruise ship will refuel from Shell’s special LNG bunker vessel that will load at the Gas Access to Europe terminal in Rotterdam, the Netherlands. The second ship is expected to refuel at one of the ports in the Western Mediterranean.

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Notes to Editors

  • Demand for LNG as a fuel in the shipping industry is increasing due to International Maritime Organization emissions reduction requirements.
  • This agreement builds on the agreement with Carnival in April 2016 to supply the AIDAprima ship with LNG to power the vessel while docked.
  • Shell is the first customer of a new, dedicated LNG for transport infrastructure. This dedicated LNG for transport supply infrastructure was announced in July 2014 - "Shell in terminal expansion deal to boost LNG fuel for transport". To serve marine customers, Shell is building an innovative bunker vessel with a capacity of around 6,500 cubic metres to facilitate ship-to-ship transfer, and deliver LNG from the Gate terminal.
  • In December 2015, Shell Trading Rotterdam B.V. (Shell) signed a time-charter agreement with Plouvier Transport N.V. and Intertrans Tankschiffahrt AG for 15 new inland dual-fuel barges, which will mainly run on LNG. A staggered delivery of the barges is expected to take place between late-2016 and mid-2018. It is planned that these 15 new barges will be refuelled via a combination of truck-to-ship locations and bunker stations linked to the Gate terminal.
  • Shell has chartered three LNG-powered offshore supply vessels for its deep-water operations in the Gulf of Mexico.
  • The development of LNG-fuelled vessels and ships, and the supporting infrastructure, enhances Shell’s position in Europe’s natural gas and LNG market. The now global trade in LNG began more than 50 years ago, when Shell brought the world’s first commercial LNG cargo from Algeria to the UK.
  • Shell Shipping & Maritime manages more than 40 LNG carriers – making Shell one of the largest International Oil Company LNG carrier operators.
  • Her Majesty’s Government of Gibraltar and Shell have signed an agreement for the supply of liquefied natural gas (LNG) for use in power generation in Gibraltar. This agreement includes the construction of a small regasification unit that will receive, store and re-gasify the LNG arriving by ship for use in Gibraltar’s adjacent gas-fired power plant, which is already under construction.

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With respect to operating costs synergies indicated, such savings and efficiencies in procurement spend include economies of scale, specification standardisation and operating efficiencies across operating, capital and raw material cost areas.

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