Shell Agrees Long-Term Charters for 14 New LNG-Fueled Tankers
- Business & Finance
Oil and gas major Shell has reached agreements to charter a fleet of up to fourteen new liquefied natural gas-fueled crude oil and products tankers, as part of its drive to decarbonise shipping.
Namely, Shell Tankers (Singapore) agreed a long-term deal to charter 10 LNG dual-fuel Aframax crude oil tankers from Sinokor Petrochemical. The units were ordered from South Korea’s Samsung Heavy Industries and are scheduled for delivery 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.
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%, Shell cited a “well-to-wake” emissions study by consultants Thinkstep.