Shell agrees to charter 14 newbuild dual-fuel tankers from Sinokor and JP Morgan

Shell agrees to charter 14 newbuild dual-fuel tankers from Sinokor and JP Morgan

Shell Tankers has entered into two agreements to charter a total of 14 LNG dual-fuel tankers.

The energy major will charter ten aframax oil tankers from South Korean owner Sinokor, which has just placed orders for the vessels at Samsung Heavy Industries with delivery scheduled in 2021.

Separately, Shell has agreed long-term charters for four new products tankers from institutional investors advised by J.P. Morgan Asset Management, with delivery of the vessels expected from 2021.

“LNG is already a commercially competitive way to reduce emissions from ships, including those delivering oil to our customers. This is an important step in Shell’s wider drive to help decarbonise the shipping sector, both as a leading supplier and user of LNG,” said Mark Quartermain, Shell’s vice president for crude trading and supply.

Shell plans to fuel the tankers at existing facilities in Singapore, Rotterdam and other bunkering ports that it is considering.

According to Shell’s 2019 LNG Outlook, demand for gas as a shipping fuel could reach 35m tonnes of LNG a year by 2035.

 

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

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