SMW 2021: Shell Defends LNG Bunkering After World Bank Criticism

Henderson's presentation was part of the Singapore Maritime Technology Conference on Wednesday. File Image / Pixabay

Global energy producer Shell has defended LNG bunkering as an interim measure towards maritime decarbonisation after criticism from the World Bank.

"LNG is the lowest-emission fuel available at scale in the shipping today; it has no near rival in that regard," Grahaeme Henderson, global head of shipping and maritime at Shell, said at the Singapore Maritime Technology Conference on Wednesday as part of Singapore Maritime Week.

"We believe LNG must be part of the solution to ensure that the new build investments the sector makes today, which will be the legacy fleet for the coming decades, have as low emissions as possible."

The World Bank published a report earlier this week titled 'The Potential of Zero-Carbon Bunker Fuels in Developing Countries'. The report was produced in conjunction with UCL's University Maritime Advisory Services (UMAS), with Tristan Smith leading the team, and Smith reiterated his longstanding position opposing LNG as a bunker fuel as well as backing ammonia.

Henderson also hinted that Shell would back a policy of carbon taxation being imposed upon shipping to incentivise the shift to alternative bunker fuels.

"One of the ways that we can see Shell help progress is advocating with international bodies for regulations that provide a stable, strong incentive to decarbonise," he said.

"To ensure that we're all moving together towards the same goal, we need a policy landscape that encourages us to make emissions reductions right now, and not to move emissions to different parts of the supply chain."