Shell charters fleet of lower-carbon oil tankers
Aug 19, 2019
Shell has agreed to charter a fleet of new liquefied natural gas-fuelled crude oil and products tankers, as part of its drive to decarbonise shipping.
Shell Tankers (Singapore) Private Ltd has agreed a long-term deal to charter a fleet of 10 LNG dual-fuel Aframax crude oil tankers from Sinokor Petrochemical Co Ltd, which expects to take delivery of them from Samsung Heavy Industries in South Korea in 2021.
Separately, Shell has agreed long-term charters for four new LNG dual-fuel oil products tankers, from institutional investors advised by J.P. Morgan Asset Management, with delivery of the vessels expected from 2021.
“LNG is already a commercially competitive way to reduce emissions from ships, including those delivering oil to our customers,” Mark Quartermain, Shell’s Vice President for Crude Trading and Supply, said. “This is an important step in Shell’s wider drive to help decarbonise the shipping sector, both as a leading supplier and user of LNG.”
The International Maritime Organization has set an ambition to reduce total annual greenhouse gas emissions from shipping by at least 50% by 2050, compared to 2008. Compared to some marine fuels, LNG can cut greenhouse gas emissions from ships by up to 21%, according to a “well-to-wake” emissions study by consultants Thinkstep.
LNG is also virtually free of sulphur and particulates, enabling ship operators to significantly reduce their local emissions.
Grahaeme Henderson, Shell’s Vice President of Shipping and Maritime, said: “LNG is a cleaner-burning and lower-carbon fuel, so ship owners are increasingly using it to help achieve their environmental ambitions in a cost-effective way.”
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Notes to Editors:
- Shell plans to fuel the tankers at existing facilities in Singapore, Rotterdam and other bunkering ports that Shell is considering. As more shippers choose LNG, it will help support further development of supply infrastructure around the world.
- In 2018, Shell International Trading and Shipping Company Limited chartered four LNG dual-fuel Aframax crude oil tankers on a long-term basis.
- In addition to the LNG dual-fuel ocean-going oil and product tankers, Shell has several dual-fuel inland oil products barges in northwest Europe, running mainly on LNG. Shell has also chartered three LNG-powered offshore supply vessels to support drilling operations in the US Gulf of Mexico.
- LNG can help shippers meet the requirements of the International Maritime Organization’s global 0.5% sulphur cap, which comes into effect on Jan 1, 2020.
- Demand for gas as a shipping fuel could reach 35 million tonnes of LNG a year by 2035, according to Shell's 2019 LNG Outlook. https://www.shell.com/energy-and-innovation/natural-gas/liquefied-natural-gas-lng/lng-outlook-2019.html
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