LNG giant Shell has taken delivery of the first of three LNG-powered very large crude carriers it has chartered from Malaysia’s AET, a unit of MISC.
Back in 2021, Shell signed deals to charter in total ten LNG-powered VLCCs from AET, Advantage Tankers, and International Seaways.
South Korea’s Hanwha Ocean, previously known as DSME, is building all of these vessels and recently delivered the first of three 300,000-dwt tankers to AET.
AET said in a statement on Monday that the Malaysian-flagged Eagle Vellore was named at a ceremony at the MMHE Pasir Gudang yard in Malaysia.
The LNG dual-fuel tanker now starts a seven-year charter deal with Shell Tankers (Singapore), a unit of Shell.
Eagle Vellore’s two sister vessels are currently under construction by Hanwha Ocean in Geoje, South Korea and due to be delivered later this year on long-term charter to Shell.
Also, MISC’s unit Eaglestar is the appointed ship manager of LR-classed Eagle Vellore and its two sister vessels.
Stacie Pitt, senior VP for crude trading at Shell, said in the statement that the delivery of the Eagle Vellore is an “important” addition to Shell’s fleet of crude tankers.
She said that fleet composition is an “essential lever” to tackle the decarbonization challenge, requiring increased investment in dual-fuel capable vessels and efficiency measures.
“LNG benefits from mature technology and a growing bunkering network which have helped cement its position as the leading alternative fuel today, with bio and synthetic LNG offering a long-term pathway to decarbonization,” Pitt said.
“While we continue to invest in LNG, with over half of Shell’s crude tanker fleet set to be dual-fuel LNG by the end of the year, we are also developing zero-emissions fuel options to support future decarbonization of the shipping sector,” she added.