Shell Charters Crude Tankers Fuelled by LNG

Shell on February 20 signed agreements with Russian shipowner Sovcomflot to time-charter two 'dual-fuel' crude oil tankers able to run on regasified LNG.

Sovcomflot said its announcement marked "a historic turning point that sets new environmental standards for the global tanker industry." The time-charters were signed at IP Week event in London by executives from both companies.

They are part of a series of six Sovcomflot 'Aframax' tankers currently under construction and due for delivery between Q3 2018 and Q1 2019. The two tankers will be on time charter to Shell for up to 10 years, with a minimum commitment of five years, and will be ice-class 114,000 deadweight LNG-powered Aframax tankers. They will be refuelled by Shell's specialised LNG bunker vessel Cardissa in northwest Europe. Shell will provide further supply points across northern Europe as it expands its LNG fuelling infrastructure.

Technical specifications for the new vessels have been developed by Sovcomflot, with close involvement by South Korean shipbuilder Hyundai Heavy Industries, and Russian shipbuilder Zvezda.  Shell said: "LNG fuel will play a fundamental role in the future energy mix. Chartering and fuelling these vessels highlights Shell’s commitment to LNG as emissions standards tighten."

Shaking hands after signing the deal are (centre left) Sovcomflot senior executive vice president Evgeny Ambrosov annd Shell vice president of crude trading Mark Quartermain (centre right) - Photo credit: Sovcomflot