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HALF OF SHELL TANKER FLEET TO RUN ON GAS BY 2023

HALF OF SHELL TANKER FLEET TO RUN ON GAS BY 2023

Friday, March 12, 2021 

Shell has signed agreements to charter 10 new VLCCs powered by dual-fuel LNG engines; four from Advantage Tankers, three from AET and three from International Seaways.

All 10 ships are to be built in South Korea by DSME, with the first operational from 2022 and on charter to Shell for seven years. The main engines and vessel design chosen for the ships will mean these tankers have the lowest possible methane slip and highest fuel efficiency, achieving an expected average 20% lower fuel consumption compared to current eco-VLCC vessels. Shell says that 14 of its long-term charter fleet in service will be LNG-fuelled by the end of 2021. This latest order is expected to bring the total global dual fuel LNG fleet to 475, marking yet another important step on the predicted doubling of LNG-fuelled vessels on the water by 20231, as ship owners respond to customer calls to choose cleaner technologies.

Grahaeme Henderson, Global Head of Shell Shipping & Maritime, said: “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. This significant commitment will see Shell hit a new milestone for our fleet decarbonisation with an average of 50% of our crude tankers on time charter powered by dual-fuel LNG engines once in service. 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.”

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, marine LNG demand is expected to reach around 3.6m tonnes with 45 bunker vessels expected to be in service.

Sung Geun Lee, President and CEO of DSME, said: “The vessels have been designed with state-of-the-art technologies and not only achieve a huge reduction in greenhouse gas emissions but are also economically viable. They have a low fuel consumption with their dual-fuel LNG engines and will bring significant benefits to both the charterer and the ship owners over the long-term.”

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