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    Shell Bolsters LNG Bunkering Business


Shell has announced two significant milestones for its LNG marine fuels business in northwest Europe.

by: Mark Smedley

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Shell Bolsters LNG Bunkering Business

Shell also finalised a long-term charter with a joint venture of Belgian bunkerer Victrol and French counterpart Compagnie Fluviale de Transport (CFT) for an LNG bunker barge that can carry 3,000m3 of LNG. Also operating out of Rotterdam, it will provide additional flexibility to bunker a range of customers including vessels operating on Europe’s inland waterways.

“LNG as a marine fuel has an important role to play in the future energy mix,” said Steve Hill, Shell Energy executive vice president: “With these bunker vessels, as well as the Gate terminal, Shell is demonstrating its commitment to building a robust and reliable supply chain to meet customer needs. With tougher emissions regulations on the horizon, we will continue to work closely with our customers and partners on cleaner energy solutions.”

Shell is one of the 28 members of industry group Sea\LNG. So is Qatar Petroleum with which Shell in June agreed to cooperate on LNG bunkers. This April, Shell announced an agreement with Russian shipowner Sovcomflot to supply LNG for the world’s first LNG-powered Aframax crude oil tankers that will operate in the Baltic and northern Europe, also transporting oil products. Shell will also supply two LNG-propelled Carnival cruise-liners when they enter service 2019. And already Shell-owned subsidiary Gasnor operates the existing 7,550 m3 capacity small-scale LNG carrier Coral Methane, on long-term charter from Dutch owner Anthony Veder, to supply customers.

Shell though has several rivals in the European LNG bunker sphere including Norway's Skangas, Germany's Nauticor, Dutch Titan LNG, and Engie.

Last October, the IMO decided to implement a global 0.5% sulphur cap in 2020 on bunker fuels, giving LNG a boost as an ultra-low emission fuel worldwide. However a much tighter 0.1% cap has already prevailed for some while in northern European, Baltic and north American waters. 


Mark Smedley