Subsidiaries of Royal Dutch Shell have signed a long-term agreement with SIEM Car Carriers to supply the liquefied natural gas (LNG) to fuel two new car carries being used to transport Volkswagen Group vehicles from Europe to North America.
The new vessels, which will be delivered in 2019, will be among the first LNG-fueled vessels to operate intercontinentally between Europe and the United States.
The long-term LNG bunkering agreement was signed between SIEM and Shell subsidiaries Shell NA LNG LLC and Shell Western LNG B.V.
Shell plans to refuel the vessels in Northwest Europe and a second supply point in the United States.
“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.”
More ship owners and operators are choosing LNG fuel over traditional marine fuels to respond to sulphur and nitrogen oxide emissions regulations, including the IMO’s recent decision to implement a global 0.5% sulphur cap in 2020.
In April, Shell announced an agreement with Russian shipping company Sovcomflot to supply LNG for the word’s first LNG-powered Aframax crude oil tankers, which will operate in the Baltic Sea and Northern Europe transporting crude oil and petroleum products.
Shell will also supply LNG to the world’s first LNG-powered cruise ships following an agreement with Carnival Corporation & plc. When completed, the two vessels will be the world’s largest passenger cruise ships and will enter service in northwest Europe and the Mediterranean in 2019.