South Korea’s Pan Ocean Co said it has signed a time charter deal for one LNG bunkering vessel with a unit of energy giant Shell.
The shipping firm said in a stock exchange filing it entered the deal worth about $55 million with Shell NA LNG on April 9.
The contract would start from May 2023 and includes a firm duration period for six years as well as two extension options, Pan Ocean said.
The total duration would be eight years, depending on Shell’s decision, the firm said.
Pan Ocean did not reveal any additional info. Local reports suggest that South Korea’s Hyundai Mipo would build the LNG bunkering vessel with a capacity of 18,000 cbm.
To remind, Shell previously said it plans to boost its LNG bunkering business by 50 percent on international routes by the mid-2020s.
The firm has completed more than 400 LNG bunkering operations around the world, including in France, the Netherlands, Norway, Spain, and most recently the US and Singapore.
In addition, Shell is also building a large fleet of LNG-powered vessels.