Shell inks deals to charter six LNG newbuilds

A unit of the Hague-based energy giant Shell has agreed long-term charter contracts for six 174,000-cbm newbuild LNG carriers.

Shell has signed separate deals for two LNG ships each with affiliates of three firms.

These are Norway’s Knutsen, Korea Line Corporation, and ICBC Financial Leasing and institutional investors advised by J.P. Morgan Asset Management.

South Korea’s Hyundai Heavy Industries and Hyundai Samho Heavy Industries will build the vessels.

To remind, KSOE said last week its two yards would build four LNG carriers worth 891 billion won ($746 million).

The South Korean firm said that deals for two additional ships would follow later this month.

Assuming that one vessel has a price tag of about 223 billion won ($186.7 milllion), this puts the total order to more than $1.1 billion.

Shell secures 14 newbuild LNG carriers

The ships will join Shell’s time-chartered trading fleet with staged delivery expected to take place from mid-2023.

With the new deal, Shell has secured 14 LNG newbuilds for its fleet. The energy giant signed long-term charter deals with the trio for eight ships of the same class in December 2019.

The new vessels will all feature dual-fuel X-DF engines and boil-off management plants.

Additionally, the vessels will have air lubrication systems and shaft generators for auxiliary power.

The design and addition of energy efficiency technologies will give these ships the “best emissions performance in their class,” Shell said.

Shell’s head of shipping Grahaeme Henderson said these ships would deliver a 60% reduction in carbon emissions compared to 2004 steam turbine LNG carriers.

“Shell’s ambition is to be a net-zero emissions energy business by 2050 or sooner and highly efficient ships like these are one of the ways that we are reducing emissions in our operations,” he said.

“As we work together to develop new zero-carbon fuels at scale, we believe that LNG can play a fundamental role in providing a cleaner supply chain right now for the goods and energy that are shipped around the world every day,” Henderson added.

- Advertisements -

Most Popular

TotalEnergies releases Mozambique LNG report

French energy giant TotalEnergies on Tuesday released a report regarding the humanitarian situation in the province of Cabo Delgado,...

BarMalGas to start building Rostock LNG terminal in 2023

Germany's BarMalGas is planning to start construction on an LNG and bio-LNG terminal in the German port of Rostock...

Shell and Equinor moving forward with giant Tanzania LNG project

Shell and Equinor are expecting to sign a host government agreement and a production sharing agreement for the giant...

More News Like This

Shell to supply first LNG cargo to PetroVietnam Gas

PetroVietnam Gas, a unit of state-owned PetroVietnam, said that its Thi Vai LNG import terminal will receive the first...

First electric tug ready to start serving LNG Canada

HaiSea Marine's first of three electric tugboats which will serve the Shell-led LNG Canada project is on its way...

Shell and Equinor moving forward with giant Tanzania LNG project

Shell and Equinor are expecting to sign a host government agreement and a production sharing agreement for the giant...

Shell resumes shipments from Prelude FLNG off Western Australia

LNG giant Shell has resumed shipping liquefied natural gas from its 3.6 mtpa Prelude floating LNG producer offshore Western...