Energy major Shell has announced the signing of charter agreements for a total of ten new VLCC tankers, powered by dual-fuel LNG engines.
Shell is chartering four of the vessels from Switzerland-based Advantage Tankers, three from Malaysia’s AET and three from US owner International Seaways.
The vessels will all be built at South Korea’s Daewoo Shipbuilding & Marine Engineering (DSME), with the first set to deliver in 2022, commence seven-year charters.
Shell says the deal will see half of its long-term chartered crude tankers powered by LNG by 2023, and in the meantime it will have 14 LNG-powered vessels on charter by the end of this year.
Grahaeme Henderson, global head of Shell Shipping & Maritime, commented: “It is imperative that the shipping sector immediately employs the cleanest fuels available. Today and for the foreseeable future, LNG is the choice for new builds to ensure we are not adding heavier emitters into the global fleet while we work hard at developing zero-emissions fuels.
“This significant commitment will see Shell hit a new milestone for our fleet decarbonisation with an average of 50% of our crude tankers on time charter powered by dual-fuel LNG engines once in service. There is real urgency to tackle emissions from this sector and adopting LNG while developing zero-emissions fuels options, will make a significant difference to cumulative emissions.”