Shell, Carnival Sign LNG Agreement
Carnival Corporation, the world’s largest cruise operator, signed a framework agreement October 3 with Shell Western LNG to supply marine LNG to run the world’s first fully LNG-fueled cruise ships.
Under the agreement, Shell will initially supply Carnival's Aida Cruises and Costa Cruises lines with LNG for two new dual-fuel engine ships, expected to launch in 2019, as they cruise northwest Europe and the Mediterranean and while at anchor.
Carnival’s senior vice president for maritime affairs, Tom Strang, said: “We look forward to a productive partnership with Shell, which has the experience and shared commitment to quality, safety and operational efficiency needed to help us bring this innovative LNG initiative to life with the first fully LNG-powered ships in the global cruise industry." LNG will reduce the shipowner's emissions and improve air quality.
Lauran Wetemans, Shell's general manager for downstream LNG, said: "This is a unique partnership that will contribute to a robust and reliable LNG fuel supply chain, along with opportunities for future growth."
This agreement builds on a partnership established between Carnival's Aida Cruises line and Shell in April 2016 to supply its Aidaprima ship with LNG to power the vessel while docked.
An artist's impression of one of the future Costa Cruises LNG-powered vessels (Photo credit: Carnival Corporation)
Carnival’s latest announcement follows its order last month of three additional next-generation cruise ships that will be fully-powered by LNG, bringing its fully LNG-powered ships order total to seven for of its 10 global cruise lines. Two are for Carnival Cruise Line with delivery dates expected in 2020 and 2022, while one is designated for P&O Cruises UK with a delivery date of 2020. The other two will be built for Costa Cruises and Aida Cruises for delivery in 2021.
Shell fully acquired Scandinavian marine LNG distributor Gasnor in 2012 and has expanded its footprint since. Gasnor will operate a Shell LNG terminal in Gibraltar, expected to open late 2017. Other marine LNG distributors in Europe include Skangas, Bomin Linde, Titan LNG and Engie. LNG bunkering has extended to North America too, while ExxonMobil and Pavilion Energy are collaborating to develop solutions for LNG bunkering in Singapore.