Shell confirms charters for six LNG carrier newbuilds

Shell has inked agreements for two LNG ships each with affiliates of Knutsen LNG, Korea Line Corporation, and ICBC Financial Leasing and institutional investors advised by J.P. Morgan Asset Management.

The 174,000 cu m vessels will be built at Hyundai Heavy Industries and Hyundai Samho Heavy Industries with delivery from mid-2023. They will be equipped with dual-fuel X-DF engines, and as was announced last week air lubrication systems from Silverstream Technologies.

“These ships will deliver a 60% reduction in carbon emissions compared to 2004 steam turbine LNG carriers,” said Grahaeme Henderson, head of Shell Shipping & Maritime.

“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. 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.”

The new long term charters add to eight similar contracts signed in 2019.