Shell Inks Another LNG Bunker Supply Deal With Carnival

Monday October 3, 2016

Shell Western LNG B.V. (Shell) today announced it has signed another liquefied natural gas (LNG)-bunker supply agreement with Carnival Corporation & plc (Carnival).

The deal builds on the April 2016 agreement with Carnival to supply its AIDAprima ship, which uses LNG to power the vessel only while docked.

Under the latest deal, Shell says it will supply LNG bunkers to two of the world’s largest passenger cruise ships, which are also the world’s first to be fully LNG-powered.

Due to start sailing in northwest Europe and the Mediterranean in 2019, it is expected to mark the first time in the cruise industry LNG bunkers will be used to power ships both in port and at sea.

"We have been working closely with Carnival to get to this point in our commercial partnership. Working together from an early stage is critical in helping the transition to cleaner LNG cruising. This is a unique partnership that will contribute to a robust and reliable LNG fuel supply chain, along with opportunities for future growth," said Lauran Wetemans, Shell’s General Manager Downstream LNG.

Commenting on the deal, Tom Strang, senior vice president of maritime affairs for Carnival Corporation said: “We are committed to reducing our air emissions and improving air quality through various means, including LNG.

"We are proud to be on the forefront of advancing LNG as a fuel source for the cruise industry and creating a new model for powering next-generation cruise ships."

Under the terms of the agreement, one Carnival cruise ship will refuel from Shell’s special LNG bunker vessel that will load at the Gas Access to Europe terminal in Rotterdam, the Netherlands; the second ship is expected to refuel at one of the ports in the Western Mediterranean.

The deal also marks the latest in what has been a busy year for Shell's LNG bunker activity.

As Ship & Bunker previously reported, in August Shell signed a bunker market development agreement with Her Majesty's Government of Gibraltar (HMGoG) and the Gibraltar Port Authority (GPA).