Shell plans to deploy Korean LNG bunkering newbuild in Gulf of Mexico

Energy giant Shell says it plans to deploy the LNG bunkering vessel it recently chartered from South Korea’s Pan Ocean in the Gulf of Mexico.

To remind, Pan Ocean revealed on Monday it signed a time charter deal for one LNG bunkering vessel with a unit of Shell.

The $55 million contract will start from May 2023 and includes a firm duration period for six years as well as two extension options.

Pan Ocean did not reveal much on the bunkering vessel but Shell confirmed on Tuesday to LNG Prime that South Korea’s Hyundai Mipo would build the LNG bunkering ship with a capacity of 18,000 cbm.

One of the world’s largest promoters of LNG as fuel

The newbuild adds to a fleet of LNG bunkering vessels Shell uses across the globe.

“Shell has a target to be a net-zero emissions energy business by 2050 or sooner, in step with society,” Tahir Faruqui, general manager, Shell global downstream LNG, said.

“LNG is a key part of the solution today, and this vessel will play an important role, in particular in the Gulf of Mexico, as we look to double our existing LNG bunkering infrastructure on key international trade routes by the mid-2020s and serve more customers across our global network,” he said.

Shell has on charter three Harvey Gulf’s LNG-powered offshore supply vessels for its deep-water operations in the Gulf of Mexico.

Moreover, it has earlier this year commissioned one chartered LNG bunkering vessel, Q-LNG 4000. This vessel works from the US Port Canaveral in Florida.

The company has developed one of the world’s largest LNG fueling networks of ports and bunkering vessels on key trading routes.

Shell previously said it had completed more than 400 LNG bunkering operations around the world, including in France, the Netherlands, Norway, Spain, the US, and Singapore.

In addition, Shell is building a large fleet of LNG-powered vessels. These include dual-fueled LNG carriers, crude oil tankers, oil products tankers, and tanker barges.

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