Shell charters Knutsen’s newbuild as LNG bunkering business grows

Shell will charter a newbuild bunkering vessel from Norway’s Knutsen as the energy giant continues to grow its LNG bunkering business.

Spain’s Armon Gijon should deliver the 5,000-cbm LNG bunkering ship next year.

Following delivery, the vessel will call at the Enagas-operated terminal in Barcelona to load and then supply LNG in the region, according to a Shell statement on Thursday.

The new charter is a part of Shell’s plans to boost its LNG bunkering business by 50 percent on international routes by the mid-2020s. The firm currently has six LNG bunkering ships in its portfolio.

“Shell plans to double its existing LNG bunkering infrastructure on key international trade routes by the mid-2020s and this vessel will play an important role in that journey as we serve more customers across our global network with LNG,” Tahir Faruqui, general manager, Shell global downstream LNG, said.

“In 2019 we completed the first LNG ship to ship bunkering in Barcelona and look forward to working with our partners in this project on the delivery of this vessel, demonstrating our ability and commitment to providing safe, reliable supplies to meet the growing need for cleaner-burning fuels,” he said.

Shell completed more than 400 bunkering operations, LNG-powered fleet growing as well

To remind, Shell has recently added Gibraltar to its worldwide LNG bunkering network after wining a licence from the British overseas territory’s port operator.

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

Shell says it has already completed more than 400 LNG bunkering operations around the world, including in France, the Netherlands, Norway, Spain, and most recently the US.

In 2021, Shell will also perform LNG bunkering operations in Singapore.

Singapore’s first LNG bunkering ship FueLNG Bellina, owned by Keppel Offshore & Marine and Shell, has started commercial operations in the country following recent delivery in China.

In addition, Shell is building a large fleet of LNG-powered vessels.

It plans to take delivery of 16 dual-fuel LNG carriers, 10 LNG Aframax crude oil tankers, four new LNG oil products tankers and 40 new dual-fuel tanker barges to transport petroleum products on European inland waterways from 2021 onwards, the firm said.

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