Shell Set to be the First-mover in LNG Bunker-supply Infrastructure

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Shell is consolidating its position as a first-mover in LNG bunker-supply infrastructure, firming up its plans for a third LNG bunker-supply ship, modifying the Anthony Veder-owned LNG/LPG vessel Coral Methane to deliver gas as marine fuel.

Initial details of Shell’s plans for a third LNG bunker-supply ship emerged at the naming ceremony at Rotterdam Cruise Terminal for Cardissa, Shell’s first LNG bunker-supply ship.

Shell’s plans for Coral Methane are at an early stage. The company is considering the options and declined to say when or where the conversion will take place.

Coral Methane, the 2009-built, 7,551 m³ multigas carrier launched as the world’s first small-scale LNG/LPG/LEG vessel. Anthony Veder developed the vessel for Gasnor, to deliver small-scale shipments of gas along the Norwegian coast.

In August, Shell announced that it will charter its second LNG bunker-supply ship from Victrol NV and CFT. Like Cardissa, the 3,000 m³ bunker barge will be based at Rotterdam in the Netherlands.

The Rotterdam customers confirmed so far include Containerships, cruise ship owner Carnival, dredger owner Van der Kamp and aframax newbuildings on order to Russian shipowner Sovcomflot.  

Shell general manager downstream LNG Lauran Wetemans told the gathering that “the ball is rolling” for Shell to build up a fleet of up to five of these vessels.

“Shell has already ordered its second LNG bunker-supply ship,” he said. “Number three is in the making and, already, ships number four and five are on the cards. The ball is rolling. Now, the question is getting others to follow [our lead].”

Asked what strategy – ordering, chartering or converting – Shell will pursue in building up that fleet, Shell vice-president shipping and marine Grahame Henderson said the options are open.

“Shell will always tend to charter,” he said. “That’s our business model. But that will not stop us purchasing a vessel, if we feel that’s what we need to do to move.”

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Source: LNG World Shipping