Shell, Hapag-Lloyd pen multi-year LNG agreement

Shell, Hapag-Lloyd pen multi-year LNG agreement

Shell Western LNG B.V (Shell) and Hapag-Lloyd have signed a multi-year agreement to supply liquefied natural gas (LNG) to Hapag-Lloyd’s ultra-large container vessels.

The bunkering of 12 23,500+ TEU vessels is set to take place in the second half of 2023 at the Port of Rotterdam.

These vessels will operate on Europe-Far East routes and will make stops at major ports such as Hamburg, Singapore, and Shanghai.

According to the companies, the implementation of LNG fuel in these vessels will lead to an immediate decrease of up to 23 per cent in carbon dioxide (CO2) intensity compared to conventional fuels, as per the 2021 2nd Life Cycle GHG Emission Study on the Use of LNG as Marine Fuel conducted by Sphera for SEA-LNG and SGMF.

In addition, the utilisation of LNG supports the near-complete elimination of particle emissions.

Hapag-Lloyd believes this is an essential step to reduce emissions and achieve its goal of becoming net zero carbon by 2045.

“We are excited about our agreement with Shell to explore further decarbonisation opportunities as it allows both businesses to drive impactful change in the industry,” said Jan Christensen, Senior Director Global Fuel Purchasing at Hapag-Lloyd.

Collaborations like this are crucial in helping us deliver our sustainability strategy while also improving emissions in maritime shipping. Ultimately, this enables our customers to decrease their carbon footprint as well.”

READ: TotalEnergies Marine Fuels, Hapag-Lloyd initiate first biofuel bunker delivery in Singapore

Shell is currently exploring various fuels, technologies, and solutions to help reduce the carbon footprint of the shipping industry.

One of the options being pursued is LNG, which Shell has successfully used in more than 1,000 safe ship-to-ship bunkering operations for its marine customers. These operations are supported by an extensive network of 15 LNG bunkering locations in 10 countries worldwide.

Moreover, Shell and Hapag-Lloyd have entered into a strategic collaboration agreement to speed up the further decarbonisation of alternative marine fuels.

The initial focus will be on developing the potential of additional low-carbon fuels solutions, such as liquefied biomethane and hydrogen-based fuel liquefied e-methane.

This announcement further cements the established partnership between Shell and Hapag-Lloyd, which previously involved the LNG bunkering of the “Brussels Express,” the primary container ship of its size converted to gas propulsion.

The German shipping giant enjoyed a successful financial year in 2022, with an increase in revenues due high freight rates.

On the basis of preliminary and unaudited figures, the carrier reported an EBITDA of $20.5 billion and an EBIT (operating profit) of $18.5 billion.

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