Shell Charters 10 LNG-Fuelled VLCCs
Anglo-Dutch Shell has chartered ten very large crude carriers (VLCCs) powered by dual-fuel LNG engines, the company reported on March 11.
The vessels will be built by South Korea's Daewoo Shipbuilding & Marine Engineering, with the first due to be delivered in 2022. Four have been chartered from Advantage Tankers and three each from from International Seaways and AET, for seven-year periods.
Shell wants to have 14 LNG-fuelled vessels in its fleet by the end of 2021, and the company also has the world's biggest bunkering network, with six bunkering vessels in operation or about to start service and a further six due by 2025.
The design of the VLCCs means they have the lowest possible methane slip and the highest fuel efficiency, on average using 20% less fuel compared with other eco-friendly tankers, Shell said. Methane slip, where uncombusted methane escapes into the atmosphere with the exhaust, is one of the main environmental problems with LNG in shipping. It is a much more potent greenhouse gas than CO2 in the short term. It is particularly a problem with low-pressure engines.
"It is imperative that the shipping sector immediately employs the cleanest fuels available. Today and for the foreseeable future, LNG is the choice for new builds to ensure we are not adding heavier emitters into the global fleet while we work hard at developing zero-emissions fuels," Shell's global head of shipping and maritime, Grahaeme Henderson, said in a statement. "This significant commitment will see Shell hit a new milestone for our fleet decarbonisation with an average of 50% of our crude tankers on time charter powered by dual-fuel LNG engines once in service."
In a report last year, Shell said it viewed LNG and biofuels as the best near term solutions for decarbonising shipping, while hydrogen and fuel cells could serve as long-term solutions.