Page 12 - GLNG Week 35 2022

GLNG AMERICAS GLNG

ZIM, Shell sign 10-year LNG bunkering deal

for new container ships

TERMINALS ZIM Integrated Shipping Services (Israel) has particulate matter, and significantly less nitrogen
secured fuel supplies for 10 new LNG-powered oxides than other conventional fuels.
ships that are due to enter its fleet in 2023-2024 Eli Glickman, the president and CEO of ZIM,
under a long-term bunkering contract with a hailed the emissions-reducing aspect of the bun-
subsidiary of Shell (UK). kering deal. “With the addition of significant
The Israeli company announced the signing LNG-powered capacity to our fleet beginning
of the contract with Shell NA LNG in a statement in 2023, we have positioned ZIM as a leader in
dated August 31. It said the parties had finalised a carbon intensity reduction among global liners.
sales and purchase agreement (SPA) with a term We are pleased to execute this long-term supply
of 10 years. It put the value of the deal at more agreement with Shell to secure LNG at competi-
than $1bn. tive terms and look forward to partnering with a
ZIM did not specify the exact volumes of global industry leader such as Shell as we take an
LNG involved in the transaction. However, it did important step to ensure our fuel sourcing is well
note that Shell NA LNG had agreed to provide planned and of the highest quality. Our growing
fuel for 10 LNG-powered container ships, each LNG-powered fleet will enable ZIM to be more
of them a 15,000-TEU vessel capable of han- carbon- and cost-efficient while improving our
dling the equivalent of 15,000 standard 20-foot competitive position, particularly on the strate-
containers, over the 10-year period of the SPA. gic Asia-to-USEC trade, and allowing customers
All of the ships will serve the Israeli company’s to reduce their carbon footprint,” he said.
ZIM Container Service Pacific (ZCP) division, For his part, Steve Hill, executive vice pres-
which moves goods between Asia and the US ident for energy marketing at Shell, noted that
East Coast, it noted. ZIM was marking a milestone. “We would like
“These 10 15,000-TEU vessels are expected to to congratulate ZIM for introducing the world’s
enter into service during 2023-2024 and will be first LNG-fuelled Very Large Container Ship
transporting goods from China and South Korea (VLCS) fleet to operate on the Asia-North
to [the] US East Coast and the Caribbean,” the America shipping route,” he remarked. “We
statement said. are delighted to collaborate with them on their
ZIM described the LNG bunkering deal as a impressive efforts to reduce emissions in their
step toward reducing its carbon footprint, noting maritime supply chain. Decarbonisation of the
that LNG emitted 20% less carbon dioxide than shipping industry must begin today, and LNG is
conventional marine fuels, as well as less carbon a lower-emission fuel choice currently available
dioxide than any other fuel currently available on in meaningful volumes, and via liquefied biom-
a large scale. It also pointed out that LNG emit- ethane and liquefied e-methane, offers a credible
ted very little in the way of sulphur oxides and pathway to net-zero GHG emissions.”™

P12 www. NEWSBASE .com Week 35 02•September•2022