Shell to supply LNG to Hapag-Lloyd container ships

Shell will bunker 12 of Hapag-Lloyd's upcoming dual-fuel container ships with LNG through a multi-year supply agreement.

PHOTO: Hapag-Lloyd container ship in Singapore. Hapag-Lloyd

The 12 ships will have 23,500 TEU capacity each, be deployed on Europe-Far East routes and make port calls in Rotterdam, Hamburg, Singapore and Shanghai. Oil supermajor Shell plans to supply LNG to the vessels during their port calls in Rotterdam.

The ships are currently being built in South Korea, with the first ship expected to be delivered from later this year to the end of 2024, Hapag Lloyd’s senior director Lutz-Michael Dyck said last year.

Shell and Hapag-Lloyd will also collaborate to develop low-carbon marine fuels such as liquified biomethane and e-methane.

Rotterdam sold 328,000 cbm of LNG bunkers in 2022 - a sharp decline from 604,000 cbm sold in 2021. Soaring natural gas prices triggered widespread gas-to-oil switching among vessels with dual-fuel engines and dented overall sales. However, the recent weakening of LNG prices could spur LNG bunker demand again.

The global LNG-fuelled fleet is currently made up of 361 vessels, with another 182 expected to join this year, according to classification society DNV data.

By Nithin Chandran

Please get in touch with comments or additional info to news@engine.online