ZIM, Shell Begin $1 Billion 10-year LNG Supply Agreement with Jamaica Stem
The stem took place on March 26, 2023 at Kingston Freeport Terminal, Jamaica. Image Credit: ZIM
ZIM Integrated Shipping Services Ltd. (ZIM) and Shell North America LNG LLC (Shell) have announced the first LNG bunkering operation has taken place as part of a $1 billion 10-year LNG supply agreement.
The stem took place on March 26, 2023 at Kingston Freeport Terminal, Jamaica, and saw ZIM's 15,000 TEU capacity containership ZIM Sammy Ofer lift an unspecified volume to fuel.
Zim signed the deal with Shell last year to fuel ten such LNG-fueled 15,000 TEU vessels that will be deployed on ZIM's flagship ZIM Container Service Pacific (ZCP), on the Asia to USEC trade.
ZIM noted the operation was the first time a simultaneous operation (SIMOPS) was completed with LNG bunkering in Jamaican waters.
"We are proud to be able to offer and promote LNG bunkering in Jamaica" said Rear Admiral Peter Brady, Director-General at Maritime Authority of Jamaica.
"Decarbonization of the shipping industry is critical and, being readily available today, LNG is a key part of the transition to lower-carbon marine fuels. This offering will not only grow local businesses but also encourage companies to embrace emissions reduction solutions".
Jamaica has been planning to provide LNG bunkering for several years and has long been tipped to become an LNG bunkering heavyweight thanks to the country's wider plans to use gas to power an increasing proportion of the island's electricity grid.
Jamaica's first ship-to-ship LNG bunker operation took place last year.