Shell inks deal to supply Teekay’s LNG-fueled shuttle tankers

The Hague-based LNG giant Shell has signed a deal to supply liquefied natural gas to Teekay’s LNG-fueled shuttle tankers in Europe. 

Teekay’s 130,000-dwt vessels will operate on both liquefied natural gas (LNG) as the primary fuel, and a mixture of LNG and recovered volatile organic compounds (VOCs) as a secondary fuel.

The E-Shuttle tankers have battery packs for flexible power distribution and blackout prevention. The vessels are being built by Samsung Heavy Industries in South Korea.

Commenting on the agreement with Teekay, Tahir Faruqui, general manager, Shell Global Downstream LNG, said, “We are excited to add another tanker customer to the growing number of organizations adopting LNG.”

He added that the company has now completed more than 100 ship-to-ship LNG bunkering operations to meet the growing customer demand.

The deal with Shell is Teekay’s first LNG supply contract. Idar Hillersøy, president of Teekay Offshore Logistics added that having Shell as its strategic partner provides the company with a long-term LNG fueling solution.

Upon delivery in 2019 and 2020, two of the vessels will commence operations under the partnership’s master agreement with Equinor.