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ZIM links up with Shell in $1bn LNG bunkering deal

Israeli carrier ZIM has signed a 10-year agreement with Shell, valued at more than $1bn, for the supply of liquified natural gas for ten LNG-fueled vessels chartered from Seaspan, the world’s largest containership leasing company.

The 15,000 teu vessels are expected to enter into service during 2023-2024 and will be shipping goods from China and South Korea to the US East Coast and the Caribbean. The agreement with Shell may also cover other trades where ZIM LNG vessels could be deployed, the company added.

ZIM said that on the basis that LNG emits about 20% less greenhouse gas emissions when compared to conventional marine fuels, using LNG on these ten ships would be equivalent to having two out of the ten vessels in the fleet with zero emissions.

“With the addition of significant LNG-powered capacity to our fleet, beginning in 2023, we have positioned ZIM as a leader in carbon intensity reduction among global liners. Our growing LNG-powered fleet will enable ZIM to be more carbon and cost-efficient, while improving our competitive position, particularly on strategic Asia to USEC trade, and allow customers to reduce their carbon footprint,” remarked Eli Glickman, ZIM president and CEO.

“Decarbonisation of the shipping industry must begin today, and LNG is a lower emission fuel choice currently available in meaningful volumes and, via liquefied biomethane and liquified e-methane, offers a credible pathway to net zero GHG emissions,” added Steve Hill, energy marketing executive vice president at Shell.

Shell and French carrier CMA CGM earlier this year also signed a multi-year LNG supply deal for CMA CGM’s 13,000 teu vessels in the Port of Singapore, starting from the second half of 2023.

Adis Ajdin

Adis is an experienced news reporter with a background in finance, media and education. He has written across the spectrum of offshore energy and ocean industries for many years and is a member of International Federation of Journalists. Previously he had written for Navingo media group titles including Offshore Energy, Subsea World News and Marine Energy.
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