Shell to fuel Hapag-Lloyd’s 12 LNG-powered containerships

A unit of LNG giant Shell will bunker Hapag-Lloyd’s 12 LNG-powered containerships in the Dutch port of Rotterdam under a new deal revealed on Monday.

Shell Western LNG and Germany’s Hapag-Lloyd announced in a statement that they have signed a multi-year LNG bunkering agreement.

The partners expect bunkering for these twelve new vessels with a capacity of more than 23,500 teu to start during the second half of 2023.

Hapag-Lloyd and Shell did not provide any additional information regarding the LNG bunkering deal.

The ships will work on Europe-Far East routes and call at major ports including Rotterdam, Hamburg, Singapore, as well as Shanghai.

Shell has an extensive network of 15 LNG bunkering locations in 10 countries globally, and has already achieved over 1,000 ship-to-ship bunkering operations to its marine customers, the statement said.

Also, this announcement supports Shell and Hapag-Lloyd’s long-standing collaboration, which over the past years included the LNG bunkering of Brussels Express, the world’s first large container ship that was converted to LNG propulsion.

South Korea’s Daewoo Shipbuilding & Marine Engineering is building these twelve ultra large LNG-powered container vessels for Hapag-Lloyd.

Hapag-Lloyd first ordered six LNG dual-fuel 23,660-teu containerships from DSME in 2020, but it added six more sister vessels in 2021, with a total price tag of about $2 billion.

Moreover, the German shipping firm will take delivery of these vessels in 2023 and 2024 and all of the vessels will feature MAN ME-GI main engines.

Hapag-Lloyd recently announced the launching of the LNG-powered Berlin Express at the DSME yard in South Korea.

Decarbonization deal

In addition to the LNG supply agreement, Shell and Hapag-Lloyd have entered into a strategic collaboration agreement intended to accelerate the further decarbonization of alternative marine fuels, the statement said.

“Initial focus will be given to developing the potential of additional low carbon fuels solutions including liquefied biomethane and the hydrogen-based fuel liquefied e-methane,” the statement said.

Liquefied biomethane as a marine fuel has the potential to reduce greenhouse gas emissions by between 65 percent and 100 percent, according to the partners.

“Hapag-Lloyd has finalized a contract with Shell which secures flexible LNG supply at competitive terms,” Jan Christensen, senior director global fuel purchasing at Hapag-Lloyd, said in the statement.

“Furthermore, we are excited about our agreement with Shell to explore further decarbonization opportunities as it allows both businesses to drive impactful change in the industry,” he said.

Tahir Faruqui, general manager, head of downstream LNG at Shell, added that “shipping decarbonization must accelerate and, as the lowest-carbon fuel available at scale today, LNG is a key part of the transition to lower-carbon marine fuels.”

Most Popular

Cheniere inks long-term LNG supply deals with QatarEnergy

US LNG exporter Cheniere has entered into long-term liquefied natural gas (LNG) sale and purchase agreements with state-owned LNG giant QatarEnergy to supply 4 million tonnes per annum (mtpa) of LNG through 2054.

NFE in Puerto Rico LNG supply contract dispute

The Puerto Rico Electric Power Authority (PREPA) and US LNG player New Fortress Energy are in dispute over liquefied natural gas (LNG) deliveries under their long-term LNG supply deal, according to the Financial Oversight and Management Board for Puerto Rico.

Glenfarne’s Texas LNG seeks DOE extension

US energy firm Glenfarne is seeking an extension from the US Department of Energy to extend the non-FTA export start deadline for its planned 4 mtpa Texas LNG export terminal in the port of Brownsville.

More News Like This

Tecnicas Reunidas scores LNG Canada pipeline gig

Shell-led LNG Canada has awarded a contract to Spanish engineering and construction firm Tecnicas Reunidas to provide EPCM services for the second phase of the Coastal GasLink pipeline in British Columbia, on Canada’s west coast.

Rotterdam LNG throughput remains steady in January-September

LNG throughput in the Dutch port of Rotterdam was nearly flat in January-September this year compared to the same period last year.

Shell, GTT, and LR to develop new LNG carrier

UK-based LNG giant Shell, French LNG containment specialist GTT, and classification society Lloyd’s Register have launched a joint development project to develop a conceptual 200,000-cbm LNG carrier combining hybrid-electric propulsion with GTT’s Next1 LNG cargo containment technology.

Shell delivers first bio-LNG cargo to Singapore

A unit of UK-based LNG giant Shell has delivered what it says is Singapore's first ISCC EU-certified bio-LNG cargo at the Singapore LNG-operated terminal on Jurong Island.