Shell Charters LNG-Powered Tanker Fleet

Shell Tankers (Singapore) Private Ltd has agreed a long-term deal to charter a fleet of 10 LNG dual-fuel Aframax crude oil tankers from Sinokor Petrochemical Co Ltd, which expects to take delivery of them from Samsung Heavy Industries in South Korea in 2021.

"Shell has agreed to charter a fleet of new liquefied natural gas (LNG)-fueled crude oil and products tankers, as part of its drive to decarbonise shipping," said a press note.

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. “This is an important step in Shell’s wider drive to help decarbonise the shipping sector, both as a leading supplier and user of LNG.”

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%, according to a “well-to-wake” emissions study by consultants Thinkstep.

LNG is also virtually free of sulfur and particulates, enabling ship operators to significantly reduce their local emissions.

Grahaeme Henderson, Shell’s Vice President of Shipping and Maritime, said: “LNG is a cleaner-burning and lower-carbon fuel, so ship owners are increasingly using it to help achieve their environmental ambitions in a cost-effective way.”