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Shell charters 10 LNG-fuelled VLCCs

UK ROYAL Dutch Shell is set to charter 10 LNG- work hard at developing zero-emissions fuels.”
fuelled very large crude carriers (VLCCs) due to Shell is also a major LNG bunkering provider.
Shell is looking to have be built by South Korea’s Daewoo Shipbuilding It already has six LNG bunkering vessels in oper-
14 LNG-Fuelled VLCCs & Marine Engineering (DSME), the company ation or about to enter service, and aims to dou-
in service by the end of announced on March 11. ble that number by 2025. It estimates that global
2021. Four of the vessels have been chartered from LNG bunkering demand will reach around
Advantage Tankers, three from AET and three 3.6mn tonnes by 2023, with 45 bunkering vessels
from International Seaways (INSW), Shell due to be in operation.
explained. Their main engines and vessel design In its own statement, INSW said it would
will mean these tankers have the lowest possible fund the construction of its three vessels using
methane slip and the highest fuel efficiency. Fuel cash and long-term financing. Its charter deals
consumption will be 20% less versus eco-VLCC with Shell run for seven years, it said.
vessels. INSW, which boasts a fleet of 36 vessels
Shell is looking to have 14 LNG-fuelled tank- including VLCCs, said it was renewing its fleet
ers in service by the end of 2021, with the latest “at very attractive” terms. The vessels will meet
vessel due to be completed by 2023. An average both the International Maritime Organisation
of 50% of Shell’s crude tankers on time charter (IMO)’s existing Energy Efficiency Design Index
will run on dual-fuel LNG engines thanks to the (EEDI) standards and even exceed the 2025
latest deals, it said. Phase III EEDI targets by 8%.
“It is imperative that the shipping sector “Their significant environmental benefits,
immediately employs the cleanest fuels avail- including substantially reducing carbon foot-
able,” Shell’s global head of shipping and mari- print, are in keeping with Seaways’ commitment
time, Grahaeme Henderson, said in a statement. to [environmental, social and governance (ESG)]
“Today and for the foreseeable future, LNG is the focused corporate citizenship, and we are proud
choice for newbuilds to ensure we are not add- to continue to be at the forefront of sustainability
ing heavier emitters into the global fleet while we initiatives in the maritime sector,” INSW said. ™

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