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Shell inks LNG bunker supply deal with Siem Car Carriers

Long-term agreement to supply LNG fuel to two new car carriers in northwest Europe and United States.

Updated on 06 Oct 2017 11:01 GMT

Shell Western LNG B.V. has signed a long-term agreement to supply LNG bunkers to two new car carriers being built for Siem Car Carriers.

The new vessels, which will be among the first car carriers to be powered by LNG, are slated to enter into service in 2019, when they be used to export Volkswagen vehicles from Europe to North America.

Shell intends to bunker the ships in northwest Europe and at a second supply location in the United States.

Commenting on the agreement, Shell general manager downstream LNG Lauran Wetemans, said: "This agreement is an important development for Shell's growing LNG fuels business. We are pleased to be working with Siem Car Carriers to provide a cleaner burning fuel and look forward to future opportunities for collaboration."


As previously reported, Shell's 6,500-cbm-capacity LNG bunker vessel Cardissa was christened at its home port of Rotterdam last month and will be used to perform deliveries to customers in northwest Europe, sourcing product from the Gas Access to Europe (Gate) terminal in Rotterdam.

Shell has also recently moved to increase its LNG transportation capacity in northwest Europe with the charter of a 3,000-cbm-capacity LNG bunker barge in August.

In other recent European agreements, Shell signed an agreement with Sovcomflot to bunker the world's first Aframax crude oil tankers to be powered by LNG.

Earlier this year, Shell also agreed a deal to supply Van der Kamp's new LNG-fuelled dredging vessel, Ecodelta, which is expected to start operating in Rotterdam in 2018.

In the cruise sector, the supplier signed an agreement with Carnival Corporation to deliver LNG to the world's first fully LNG-powered cruise ships, which are scheduled to launch in 2019 with itineraries in northwest Europe and the Mediterranean.

Furthermore, Shell is a strategic partner of Carnival brand AIDA Cruises. The energy major has been helping the cruise vessel AIDAprima meet its need to be provided with LNG in all five of its northern Europe port destinations: Hamburg, Southampton, Le Havre, Rotterdam and Zeebrugge.

Asia and beyond

In Singapore, Shell is a partner in FueLNG Ltd with Keppel. The joint venture firm completed the first ever commercial LNG bunker delivery in Singapore towards the end of last month.

In the Middle East, meanwhile, Shell Gas & Power Developments B.V. and Qatar Petroleum's Wave LNG Solutions signed a framework agreement to develop LNG bunkering infrastructure at "strategic shipping locations" across the globe, where they are to focus on the development of LNG bunkering facilities at locations in Europe, the Middle East and East Asia.

Image: Siem Car Carriers' new LNG-powered vessel design. Two ships are scheduled to enter into service in 2019.

Related Links:

Sovcomflot CEO keen to see Russia improve port infrastructure for LNG bunkering
LNG bunker vessel Cardissa christened in Rotterdam
FueLNG completes first commercial LNG bunker delivery in Singapore
Shell ups LNG bunker supply capacity with barge charter
Shell and Qatar Petroleum to develop LNG bunkering in Europe, Middle East and East Asia

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