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Home News Hapag-Lloyd, Shell ink multi-year LNG supply agreement

Hapag-Lloyd, Shell ink multi-year LNG supply agreement

Shell Western LNG B.V and Hapag-Lloyd signed a multi-year agreement for the supply of liquefied natural gas (LNG) to the German carrier’s ultra large dual-fuel container vessels of 23,500+ TEUs.

Bunkering for these twelve new container ships, which will be deployed on Europe-Far East routes, is expected to commence during the second half of 2023 and LNG will be supplied in the Port of Rotterdam.

Hapag-Lloyd expects that the use of LNG will reduce the CO2 intensity of these vessels by up to 23% compared to conventional fuels.

According to the announcement, Shell is exploring the viability of, and investing in a range of fuels, technologies and solutions that will help decarbonise shipping, including the use of LNG, where through a network of 15 LNG bunkering locations in 10 countries globally, it has already achieved over 1,000 ship-to-ship bunkering operations.

In addition to the LNG supply deal, Shell and Hapag-Lloyd have entered into a strategic collaboration agreement intended to accelerate the further decarbonisation of alternative marine fuels.

“The initial focus will be given to developing the potential of additional low carbon fuels solutions including liquefied biomethane and the hydrogen-based fuel liquefied e-methane,” said the announcement.

Jan Christensen, senior director global fuel purchasing at Hapag-Lloyd, commented, “Hapag-Lloyd has finalised a contract with Shell which secures flexible LNG supply at competitive terms. Furthermore, 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. Collaborations like this are crucial in helping us deliver our sustainability strategy while also improving emissions in maritime shipping.”

The two companies retain a long-standing collaboration, which over the past years included the LNG bunkering of the container ship Brussels Express, the world’s first large container vessel that was converted to gas propulsion.





Antonis Karamalegkos
Managing Editor

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