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LNG Bunkering

Half of Shell long-term chartered crude tankers to be powered by LNG in 2023

Shell on Thursday signed agreements to charter ten new crude tankers powered by dual-fuel LNG engines; order is expected to bring the total global dual fuel LNG fleet to 475.

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Oil major Shell on Thursday (11 March) signed agreements to charter ten new crude tankers powered by dual-fuel liquefied natural gas (LNG) engines.

Four of the very large crude carriers (VLCCs) have been chartered from Advantage Tankers, three from AET and three from International Seaways.

All 10 ships will be built in South Korea by DSME, the first operational from 2022 and will be on charter to Shell for seven years.

The main engines and vessel design chosen for the ships will mean these tankers have the lowest possible methane slip and highest fuel efficiency including on average 20% less fuel consumption compared to eco VLCC vessels on the water.

Shell will continue to significantly invest in LNG for its long-term charter fleet with 14 in service by the end of 2021, it says.

This order is expected to bring the total global dual fuel LNG fleet to 475, marking yet another important step on the predicted doubling of LNG-fuelled vessels on the water by 2023, as ship owners respond to customer calls to choose the cleanest technologies available today. 

“It is imperative that the shipping sector immediately employs the cleanest fuels available. Today and for the foreseeable future, LNG is the choice for new builds to ensure we are not adding heavier emitters into the global fleet while we work hard at developing zero-emissions fuels,” said Grahaeme Henderson, Global Head of Shell Shipping & Maritime.

“This significant commitment will see Shell hit a new milestone for our fleet decarbonisation with an average of 50% of our crude tankers on time charter powered by dual-fuel LNG engines once in service. There is real urgency to tackle emissions from this sector and adopting LNG while developing zero-emissions fuels options, will make a significant difference to cumulative emissions.”

According to Shell, the company is rapidly making LNG available on global trading routes at major ports in Europe, Asia and North America to meet customer demand with tankers and the bulk and liner segments continuing to grow uptake.

By 2023, marine LNG demand is expected to reach around 3.6 million tonnes with 45 bunker vessels expected to be in service, it notes.

“The vessels have been designed with state-of-the-art technologies and not only achieve a huge reduction in greenhouse gas emissions but are also economically viable. They have a low fuel consumption with their dual-fuel LNG engines and will bring significant benefits to both the charterer and the ship owners over the long-term,” said Sung Geun Lee, President and CEO of DSME.

AET President and CEO Captain Rajalingam Subramanian, said:

“This latest addition of LNG dual-fuel VLCCs to AET’s growing, eco-efficient fleet portfolio clearly demonstrates our continued commitment to cleaner shipping solutions that are economically viable, and our aspiration to reduce our carbon footprint in alignment with the IMO greenhouse gas (GHG) strategy.

I would like to thank Shell for the partnering opportunity in this innovative environmental solution, building on the long-term relationship we already have across many segments of our business and we look to further expand as leaders in sustainable energy transportation. My congratulations to Advantage Tankers and International Seaways for their courage and leadership in this effort, which further reinforces that the environmental agenda and commercial viability can co-exist in sustainable shipping.”

International Seaways’ President and CEO Lois K. Zabrocky, said:

“We are pleased to support Shell’s leadership in significantly reducing the carbon footprint of the maritime sector and are excited to partner with them on this critical objective,” said Lois K. Zabrocky, International Seaways’ President and CEO. “These dual-fuel LNG VLCCs fit well with our fleet and we expect them to provide significant long-term commercial advantages. Importantly, the significant environmental benefits of these state-of-the-art vessels are also consistent with Seaways’ commitment to ESG-focused corporate citizenship and advancing sustainability initiatives.”

Tugrul Tokgoz, CEO of Advantage Tankers, said:

“Advantage Tankers is very happy and proud to be part of this exciting project together with Shell. These innovative vessels will provide both economic and environmental benefits. We believe dual fuel LNG propulsion will continue to grow as our industry strives to meet long term goals for greenhouse gas emissions. LNG has the benefit of being an abundant and low-cost fuel source and importantly produces 30% less carbon emissions than alternative conventional fuel used today. We are committed to working with partners to provide clean and efficient sources of transportation.”

  •         LNG is proven, safe and the lowest carbon emitting fuel currently available to the maritime sector. Vessels using LNG as a fuel are cost competitive over their lifecycle and typically require less maintenance than those running on conventional fuels.
  •         A study by Thinkstep found that when compared with heavy fuel oil, from extraction to combustion LNG can reduce greenhouse gas emissions by up to 21% for 2-stroke slow speed engines and up to 15% for 4-stroke medium speed engines. We know that the design guarantees for these vessels deliver a minimum emission saving of 16% when compared to an eco-ship, and our operations modelling suggests considerable improvement on that figure. We look forward to measuring the performance of these vessels closely as they deliver CO2 efficiencies over the time of the charter.
  •         Shell plans to double its existing LNG bunkering infrastructure on key international trade routes by the mid-2020s. New LNG bunker vessel orders will bring the global number to 45 by 2023, matching the pace of the anticipated growth in LNG-fuelled ships.

Photo credit: Shell
Published: 12 March, 2021

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Alternative Fuels

Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) and South Korean shipbuilder Hanwha Ocean on Wednesday (2 September) signed a shipbuilding contract for six 13,000 TEU class LNG dual-fuel container vessels. 

The contract was signed by Dr. Chuck Tsai, Chairman of Yang Ming, and Mr. Charles Kim, CEO of Hanwha Ocean. The vessels are scheduled for delivery between 2028 and 2029. 

They will complement Yang Ming’s existing fleet of 10,000+ TEU vessels and serve as key vessels on East-West services, with deployment flexibility across trade lanes connecting Asia with the East and West Coasts of North America, South America, and the Mediterranean. 

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

“As Yang Ming transitions toward net-zero emissions, LNG provides a relatively mature and economically viable alternative fuel solution, capable of reducing greenhouse gas emissions by approximately 20%,” the company said. 

“At the same time, ammonia can serve as a carbon-free fuel by utilising converted LNG storage facilities, while offering relatively lower conversion costs and comparatively well-developed supply chains and infrastructure. The Ammonia Fuel Ready design will therefore provide Yang Ming with greater flexibility in responding to increasingly stringent international regulations on greenhouse gas emissions.”

In addition, the vessels will be equipped with Type B LNG fuel tanks with a design pressure of 1.0 bar to enhance the safety and efficiency of LNG operations, together with a range of energy-saving technologies, including Wind Shields, Rudder Bulbs, Pre-Swirl Stators, and Shore Power Systems. Smart ship technologies and cybersecurity protection features will also be incorporated to enhance operational efficiency, safety, and reliability while effectively reducing fuel consumption and greenhouse gas emissions.

Deliveries under Yang Ming’s next-generation fleet optimization plan commenced earlier this year. By 2030, a total of 24 new vessels are expected to enter service. 

This includes 18 LNG dual-fuel vessels—comprising five 15,500 TEU, seven 16,000 TEU, and the six 13,000 TEU vessels under this contract—alongside six 8,000 TEU methanol dual-fuel-ready ships. 

 

Photo credit: Yang Ming Marine Transport
Published: 4 September, 2026

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Alternative Fuels

LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Both secured AiP for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Lloyd’s Register (LR) and the Marine Design and Research Institute of China (MARIC) on Thursday (3 September) have secured Approval in Principle (AiP) for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Announced at SMM 2026, the concept addresses one of the biggest investment challenges facing shipping today: the need to develop vessels and capabilities that can support a range of alternative fuel options and pathways as technologies, infrastructure and regulations evolve.

While LNG is already a mature fuel pathway, methanol and ammonia remain at an earlier stage of development, with questions around global fuel availability, infrastructure development, economics and long-term adoption.

The 114,000 DWT tanker concept has been designed as a product and crude oil carrier that can accommodate future conversion to LNG, methanol or ammonia as technologies, regulations and fuel supply chains mature. By incorporating conversion readiness at the design stage, the concept aims to reduce future retrofit complexity and provide owners with greater confidence when planning long-term fleet investments.

The design concept was reviewed against LR’s July 2026 class rules and regulations, including requirements relating to ships using gases and other low-flashpoint fuels, alongside relevant IACS Common Structural Rules for oil tankers. Final classification and statutory approval remain subject to full compliance with all applicable rules and regulations.

Theo Kourmpelis, Global Business Director for Tankers, Lloyd’s Register, said: “Shipowners are being asked to make major investment decisions today despite continued uncertainty around which fuels will dominate in the decades ahead. Alternative fuel solutions each offer potential pathways to compliance, but fuel infrastructure, regulation and economics continue to evolve at different speeds around the world.

“Designs that preserve flexibility will be critical in helping owners manage risk while preparing for multiple future scenarios.”

Si Nan, Marine & Offshore Marketing Department Vice Director, MARIC, said: “As the industry explores different decarbonisation pathways, shipowners need vessel designs that can adapt alongside technological and regulatory developments. This concept was developed specifically to provide greater fuel flexibility and long-term resilience, allowing owners to respond to changing market requirements without being locked into a single fuel strategy.

“Receiving Approval in Principle from Lloyd’s Register is an important milestone that validates the design concept and supports its future development.”

 

Photo credit: Lloyd’s Register
Published: 4 September, 2026

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Alternative Fuels

DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

LNG-fuelled vessels accounted for the vast majority of August activity while the strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year.

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform alternative-fuelled vessel ordering was strong in August, with 52 new vessels added to the platform.

This is the highest monthly total since October 2024 and follows another active month in July, when 47 vessels were added to the database.

LNG-fuelled vessels accounted for the vast majority of August activity, with 46 orders recorded. The container segment led the way with 30 orders, while the car carrier segment contributed a further 12 LNG-fuelled vessels. In addition, four ethanol-fuelled bulk carriers and two hydrogen-powered bulk carriers were added during the month, as well as one LNG bunker vessel.

The strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year. In total, 242 alternative-fuelled vessel orders have been placed in the first eight months of 2026, representing a 27% increase compared with the same period in 2025.

LNG remains the dominant fuel choice, accounting for 63% of all alternative-fuelled vessel orders registered so far this year. Container vessels represent the largest share of these LNG orders (59%), followed by car carriers (30%).

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “The past two months have been particularly strong for alternative-fuelled vessel ordering, with August recording the highest monthly total we’ve seen since October 2024. This has helped lift year-to-date orders to a level well above the same period last year.

“LNG remains the leading fuel choice, driven largely by activity in the container and car carrier segments. These sectors have been among the earliest adopters of alternative fuels, supported by predictable liner operations and increasing demand from cargo owners to reduce emissions across supply chains. 

“For many owners, LNG offers a combination of emissions reductions, fuel availability and future flexibility while the longer-term fuel landscape continues to evolve. 

“At the same time, the latest figures include orders for ethanol- and hydrogen-fuelled vessels, highlighting that owners continue to explore a range of decarbonization pathways. Different segments are making different fuel choices, but the overall level of activity demonstrates continued investment in lower-emission shipping.”

Screenshot 2026 09 04 at 12.29.26 PM Screenshot 2026 09 04 at 12.29.36 PM

 

Photo credit: DNV
Published: 4 September, 2026

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