Shell Western LNG B.V and Hapag-Lloyd announced the signing of a multi-year agreement for the supply of LNG to Hapag-Lloyd’s ultra large dual-fuel container vessels of 23,500+ 20-foot equivalent units (TEU). Bunkering for these 12 new vessels is expected to start during the second half of 2023 and LNG will be supplied in the Port of Rotterdam. The modern ships will be deployed on Europe-Far East routes and call at major ports including Rotterdam, Hamburg, Singapore, and Shanghai.
Using LNG enables Hapag-Lloyd to immediately reduce the CO2 intensity of these vessels by up to 23% compared to conventional fuels. Additionally, the use of LNG supports the almost complete reduction of particle emissions. This is another important step for Hapag-Lloyd to decarbonize its fleet in line with its goal of becoming net zero carbon by 2045.
As a hard-to-abate sector, Shell is exploring the viability of, and investing in a range of fuels, technologies and solutions that will help decarbonize shipping. This includes the use of LNG, where through an extensive network of 15 LNG bunkering locations in 10 countries globally, Shell has already achieved over 1,000 safe ship-to-ship bunkering operations to its marine customers.
In addition to the LNG supply agreement, Shell and Hapag-Lloyd have entered into a strategic collaboration deal intended to accelerate the further decarbonization of alternative marine fuels. Initial focus will be given to developing the potential of additional low carbon fuels solutions including bio-LNG and the hydrogen-based fuel liquefied e-methane. Bio-LNG as a marine fuel has the potential to reduce greenhouse gas emissions by between 65% and 100%.
“We are delighted to have partnered with Hapag-Lloyd on this important initiative. Shipping decarbonization must accelerate and, as the lowest-carbon fuel available at scale today, LNG is a key part of the transition to lower-carbon marine fuels. As we look to the future, we are committed to working with leading shipping companies like Hapag-Lloyd to establish the credible pathways to net zero,” said Tahir Faruqui, General Manager, Head of Downstream LNG at Shell.
“We have finalized a contract with Shell which secures flexible LNG supply at competitive terms. Furthermore, we are excited about our agreement with Shell to explore further decarbonization opportunities as it allows both businesses to drive impactful change in the industry. 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,” commented Jan Christensen, Senior Director Global Fuel Purchasing at Hapag-Lloyd.
This announcement supports Shell and Hapag-Lloyd’s long-standing collaboration, which over the past years included the LNG bunkering of the “Brussels Express”, the world’s first large container ship that was converted to natural gas propulsion.
Source: Shell
