London-based small-scale player Avenir LNG said it has signed a deal with a unit of energy giant Shell to charter one of its LNG bunkering and supply vessels.
Under the deal, Houston-based Shell NA LNG will charter the 20,000-cbm Avenir Achievement, currently under construction at China’s CIMC SOE.
Avenir expects to take delivery of this vessel in the second quarter of next year.
Starting in the first quarter of 2023, the vessel would serve Shell for a period of three years with an option to extend up to five years, Avenir said on Wednesday.
Avenir has two large 20,000-cbm LNG vessels on order at CIMC SOE, Avenir Allegiance and Avenir Achievement.
The firm claims these are the world’s largest LNG bunkering ships.
This new charter, including options, increases Avenir’s overall vessel charter revenues backlog to $81 million as of December 1, 2021.
Chief executive Peter Mackey welcomed this agreement with Shell for the newbuild vessel as Shell continues to expand its LNG bunkering capabilities.
“This deal marks another major achievement in Avenir’s development as we fix the last vessel in our current newbuilding program,” Mackey said.
The joint venture of Stolt-Nielsen, Hoegh and Golar took delivery of its first two out of six vessels, Avenir Advantage and Avenir Accolade in October 2020 and March 2021, respectively.
Avenir also welcomed the 7,500-cbm LNG bunkering and supply vessel, Avenir Aspiration, in October.
Looking at the current schedule, Avenir expects to take delivery of Avenir Allegiance this year, followed by Avenir Achievement and the 7,500-cbm Avenir Ascension next year.