Shell signs charter contracts for eight LNG carriers
Dec 20, 2019
Shell Tankers (Singapore) Private Limited (“Shell”) announced that they have entered into time-charter contracts for eight newbuild liquefied natural gas (LNG) carriers.
Shell has signed separate agreements for four LNG carriers with affiliates of Knutsen LNG, two LNG carriers with Korea Line Corporation and two LNG carriers owned by investors advised by J.P. Morgan Asset Management.
These state-of-the-art 174,000 cbm LNG carriers will be built by Hyundai Heavy Industries and Hyundai Samho Heavy Industries. They will all be equipped with efficient dual-fuel X-DF engines, boil-off management plants, air lubrication systems and shaft generators for auxiliary power. They will be integrated into Shell’s time-chartered trading fleet.
Dr Grahaeme Henderson, Vice President of Shell Shipping & Maritime, said: “These high technology ships deliver significant benefits for the Shell fleet by reducing emissions and improving fuel efficiency, and will support Shell’s trading businesses in safely and reliably delivering LNG to our customers around the world. Improvements in ship hull and machinery design, and the introduction of digital performance management systems, has resulted in up to 40% more fuel efficiency than equivalent ships operating in 2008. We have taken further steps with the addition of energy efficient technologies on these ships, such as air lubrication, making a substantial reduction in the carbon intensity of our operations.”
Mr. S. Y. Park, Chief Operating Officer & Senior Executive Vice President of Hyundai Heavy Industries said: "This project is unique in the sense that its success depends on strong and close partnership among multiple parties. Thus, we are proud of the fact that, through exemplary collaboration between each of the parties, we have successfully brought the project to execution. We are also excited to envision that this project will lead the global LNGC shipbuilding/shipping industry by introducing lower emission vessels which are safer and more efficient than ever. Accordingly, we look forward to successful construction and delivery of the vessels through continued cooperation with the partners.”
Mr. Trygve Seglem, owner of Knutsen OAS Shipping AS, says: “I am proud to be part of this agreement with Shell. This contract further extends our cooperation with Shell, and ensures that we can provide Shell with state of the art transportation services with these safe, efficient, and lower-emission LNG carriers.”
Mr. CB Kim, Vice Chairman at Korea Line Corporation said: “This unique circumstance will strengthen our relationship with global energy company Shell and help us to mutually develop further opportunities on international LNG transportation market, as well as LNG bunkering market actively in due course.”
Mr. Andrian Dacy, Global Head of Transportation at J.P. Morgan Asset Management said: “We are excited and honored to partner with Shell on these groundbreaking, technologically innovative vessels. This project is an important step in our commitment to pursue the long-term environmental sustainability of the global shipping industry.”
Staggered delivery of the vessels is expected to take place from mid-2022.
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