Pushing LNG Projects Forward to Reduce Marine Emissions

Credits: David Clode/Unsplash

Shell said late last month that it would further long-standing collaboration with Hapag-Lloyd by signing a multi-year agreement to supply the global shipper liquefied natural gas for its 12 ultra-large, dual-fuel container vessels, reports NGI.

LNG as fuel

Shell, a major LNG portfolio player and the world’s largest trader of the super-chilled fuel, didn’t say how much or exactly how long it would provide supplies to Hapag-Lloyd. The company did say that the 12 vessels would start receiving fuel in the second half of this year in the Port of Rotterdam in the Netherlands.

Using LNG to power the massive container ships would help Hapag-Lloyd cut carbon dioxide emissions by up to 23% compared to conventional fuels. LNG would also cut almost all particle emissions as the company aims to decarbonize its fleet of more than 200 ships by 2045.

The hard-to-abate maritime sector, which is still heavily reliant on fossil fuels, is working to curb emissions as international regulators have rolled out stringent targets in the coming years. The maritime transport industry contributes 3% of the world’s greenhouse gas (GHG) emissions and about 15% of its major air pollutants each year, according to a World Bank report released in 2021.

While alternatives like hydrogen and ammonia could ultimately offer better solutions in the long-term, LNG is currently more attractive relative to traditional options like low-sulfur and heavy-fuel oil.

“Shipping decarbonization must accelerate and, as the lowest-carbon fuel available at scale today, LNG is a key part of the transition to lower-carbon marine fuels,” said Shell’s Tahir Faruqui, head of Downstream LNG.

Shell and Hapag-Lloyd also signed a strategic collaboration agreement to accelerate decarbonization in the marine sector by advancing lower carbon fuels such as biomethane and hydrogen.

Reducing emissions 

To better reduce its own carbon footprint, Chevron said it has signed an agreement with an affiliate of Sembcorp Marine Ltd. to retrofit its LNG fleet. Under the deal, Sembcorp would install reliquefaction systems, new gas compressors and other equipment to cut boil-off, lower fuel consumption and boost the volume of cargoes delivered by Chevron.

Chevron, the largest LNG producer in Australia with stakes elsewhere in the world, said the work is expected to be completed by mid-2025.

The company added that the new equipment would also help it meet targets set by the International Maritime Organization. The IMO has established a goal of reducing GHG emissions from shipping by at least 50% below 2008 levels by 2050.

Chevron Shipping Co. LLC operates a fleet of 30 ships that include conventional crude and product carriers, as well as LNG vessels, among others.

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Source: NGI


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