LNG BUNKER LICENCE APPLICATION

Shell is submitting an application to the Gibraltar Port Operations Office for a liquefied natural gas (LNG) bunker licence in Gibraltar.

LNG bunkering is similar to traditional ship fuel bunkering operations that already occur in Gibraltar, which is one of the biggest ship bunkering locations in Europe.

LNG bunkering is a safe procedure with highly trained professionals in charge of operations, and numerous safety measures in place.

Shell has already safely completed more than 250 LNG bunkering operations around the world, including in France, the Netherlands and Norway. In 2021, Shell will also perform LNG bunkering operations in North America and Singapore.

LNG is cleaner than traditional marine fuels, producing lower emissions of particulates, such as sulphur, nitrogen oxide and carbon dioxide, than both diesel and heavy fuel oil. LNG is likely to remain the cleanest, affordable alternative to traditional marine fuels available in meaningful volumes in the coming decades. It is proven, safe and has a strong track record as a fuel.

Many different types of ship already run on LNG, including tankers and cruise liners. These ships are designed to the highest safety standards and subject to rigorous testing. They have to be compliant with the the IGF code

. This is the International Code of Safety for ships using gas as a fuel.

Shell owned Cardissa bunkering worlds first LNG powered Aframax tanker — Shell-owned Cardissa bunkering the world’s first LNG-powered Aframax tanker in Rotterdam

During an LNG bunkering operation, LNG is supplied to ships through a hose from one ship to another (known as a ship-to-ship transfer). At Shell, this is completed from a smaller ship known as an LNG bunker vessel. The bunker vessel is usually filled with LNG from an LNG terminal, and then moored alongside the vessel that will receive the LNG. A hose is connected between the two ships to transfer the LNG from one vessel to another. The length of time the LNG transfer takes is dependent on the size of the receiving vessel.

Shell welcomes feedback, which helps us to plan, develop and operate our projects, minimise impacts and maximise benefits for stakeholders. If you have any questions about Shell’s LNG bunker licence application please get in touch with us using the email address SLB-Info-GibraltarLNG@shell.com.

For further information about the use of LNG as a transport fuel click here

If granted a licence, where will LNG bunkering operations in Gibraltar take place?

LNG bunkering operations in Gibraltar will typically occur in the western anchorage where all other ship bunkering operations in Gibraltar currently occur. No LNG bunkering operations will take place at the port or from the North Mole LNG terminal.

What time of day might LNG bunkering occur?

As with conventional bunkering operations that already take place in Gibraltar, LNG bunkering can occur at any point in the day or night.

How safe is LNG bunkering?

LNG bunkering is very safe with Shell having completed more than 250 LNG bunkering operations worldwide. Shell has over 50 years experience in handling, storing and transporting LNG. Bunkering can only take place when highly trained professionals are in charge of operations. High industry standards must also be incorporated and followed to ensure safe operations.

How is fuelling a ship with LNG different to fuelling it with more traditional fuels?

LNG is much colder (minus 162 degrees Celsius) requiring specific equipment for transfer and storage and associated safety systems. However, many operational steps and elements of fuelling a ship with LNG is the same as when using traditional fuels.

Is the Shell application for an LNG bunker licence linked to the regasification terminal?

The liquefied natural gas regasification terminal in Gibraltar is a joint venture between Shell and Her Majesty’s Government of Gibraltar. It is solely responsible for the import of LNG for use at the Gibraltar Electricity Authority power plant. The Shell application for an LNG bunkering licence is entirely separate, led by Shell alone and regulated by the Gibraltar Port Authority. All questions and enquiries for Shell in relation to the Shell LNG bunkering licence application should be directed to Info.GibraltarLNG@shell.com Questions for the Gibraltar Port Authority should be sent to gpaenquiries@port.gov.gi.

Where else in the world has LNG bunkering already taken place?

Shell has already safely completed more than 250 LNG ship-to-ship bunkering operations in Europe. In 2021, Shell will also perform LNG bunkering operations in North America and Singapore. In addition, LNG bunkering operations have been completed in various locations by other companies. LNG bunkering locations continue to grow to support the expected demand growth for LNG as a fuel and support shipowners with a greater level of flexibility for their routes.

How big are the LNG bunker vessels Shell has on charter? How much fuel can they provide?

Shell has the largest global portfolio of LNG bunker vessels (six) across a range of sizes for supplying marine LNG to customers. These range from 7,500 m3 to 1,000 m3. The Shell Shipping & Maritime-owned and managed Cardissa can hold around 6,500 cubic metres of LNG fuel. The vessel’s seagoing capability enables Shell to serve customers with LNG fuel in locations throughout Europe.

How much better for the environment is LNG when used as a maritime fuel, compared with traditional marine fuels?

Compared with 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

. Gas is one of the few energy sources that can meet growing demand while reducing emissions from industry and transport when replacing coal or liquid fuels. It will continue to play a critical role in sectors where demand is anticipated to grow, such as the long-distance transportation of people and goods.

What is the demand for LNG as a maritime fuel likely to be in the future?

The 2019 Shell LNG Outlook projected marine LNG fuel use to triple by 2025 and be more than 10 times levels seen in 2019 by 2030.

How do the regulations in relation to LNG bunkering in Gibraltar and the overall licence application process get developed?

These are developed by the Gibraltar Port Authority. For information about these please direct queries to gpaenquiries@port.gov.gi.

To find out more about industry perspectives on decarbonising the shipping sector please click here (PDF, 15 MB)