Construction of Shell's "Innovative" LNG Bunker Vessel Underway

Shell says Containerships has signed an agreement to become the first customer of the specialised LNG bunker vessel upon its mid-2017 launch.

Shell Monday in an emailed press release announced that Korea's STX Offshore & Shipbuilding Co., Ltd. (STX) commenced the construction of Shell's "innovative" liquid natural gas (LNG) bunkering vessel with a steel cutting ceremony on Friday, and noted that Containerships Ltd Oy (Containerships) is set to become the first customer of the specialised LNG bunker vessel upon its mid-2017 launch.

"This is a significant landmark in bringing this innovative LNG bunker vessel with cutting-edge technology to reality," said Dr. Grahaeme Henderson, Vice President of Shell Shipping & Maritime.

As Ship & Bunker previously reported, Shell's new "highly efficient and maneuverable" 6,500 cubic metre capacity vessel, which is set to be based out of the port of Rotterdam, will make deliveries to LNG-fueled ships in northwest Europe and other locations.

An agreement signed between Shell and Containerships on November 24 is said to have secured the LNG bunkering vessel's first customer, with Kari-Pekka Laaksonen, President and CEO of Containerships, calling the deal a "vital component" of the company's LNG strategy.

Containerships is reported to intending to charter 1,400 TEU container vessels, said to be currently under construction by Nordic Hamburg Shipping in China, which will be fueled with LNG from Shell's LNG bunker vessel at Rotterdam.

"The supply agreement between Shell and Containerships is another example of the marine LNG fuel supply chain coming together," says Lauran Wetemans, Shell's General Manager Downstream LNG.

"Working together with customers like Containerships is critical to encourage the use of LNG as a fuel in the marine sector, and we're committed to helping make the transition to LNG."

In September, Mats Fagerberg, Managing Partner at Affinity LNG LLP, argued that demand for LNG bunkering is currently too low to justify dedicated bunkering vessels.