Shell NA LNG and Shell Western LNG have signed a long-term agreement with SIEM Car Carriers for the supply of liquefied natural gas (LNG) to fuel two new car carriers.
The vessels, expected to be delivered in 2019, will be among the first car carriers in the world to be powered by LNG, according to Shell. In addition, the newbuildings will be among the first LNG-fueled vessels to operate intercontinentally between Europe and the United States as they will be used to transport Volkswagen Group vehicles from Europe to North America.
Shell plans to refuel the vessels in Northwest Europe and provide a second supply point in the United States.
“This agreement is an important development for Shell’s growing LNG fuels business. We are pleased to be working with SIEM Car Carriers to provide a cleaner burning fuel and look forward to future opportunities for collaboration,” Lauran Wetemans, Shell’s General Manager Downstream LNG, commented.
Earlier this year, Shell also inked a deal with Russia’s SCF Group (Sovcomflot) for the supply of LNG to fuel the first Aframax crude oil tankers in the world to be powered by LNG. Under the deal, Shell will provide the LNG fuel for the new generation of SCF Group’s 114,000 deadweight ice-classed Aframax tankers that are scheduled to come into operation in Q3 2018.