Shell has sold its first LNG bunker vessel (LNGBV) newbuilding in a sale-and-leaseback deal with South Korean owner Pan Ocean.

Industry sources working closely with the LNG bunkering sector said Shell is chartering the 6,500-cbm Cardissa (built 2017) back for six years, with options to extend the hire by two 12-month terms.

No price has yet emerged.

In April, Pan Ocean was named as being behind a $55m order for an 18,000-cbm LNGBV newbuilding at Hyundai Mipo Dockyard — due for delivery in May 2023 — that had been fixed to Shell on similar terms to the Cardissa.

Those following the order said Shell is closing in on a similar-­sized vessel with Pan Ocean and will position one in the US Gulf and the other in Singapore.

In response to TradeWinds’ questions, the energy major declined to comment on recent or upcoming LNGBV newbuildings, but confirmed the Cardissa deal.

A spokesman said: “Shell has signed a sale-and-leaseback agreement with Pan Ocean for the ­Cardissa...

More to come

“We remain committed to doubl­ing our LNG bunkering infrastructure on key international trade routes by the mid-2020s and the Cardissa will continue to operate safely in north-west Europe.

“This agreement strengthens our relationship with Pan Ocean as we look to support them with the growth of LNG-fuelled vessels within their fleet.”

At the time of its delivery, the high-specification Cardissa was reported to have cost about $63m, although those working closely with the vessel said the final newbuilding cost was closer to $72m.

At one press event, Shell officials described the STX Offshore & ­Shipbuilding-built LNGBV as a “gold-plated” vessel that would not ­necessarily be the future model for ships of this type. But they added that the company had been keen to control all aspects of its debut LNGBV newbuilding.

The Cardissa — one of the first few purpose-built LNGBVs — has a remote-controlled bunkering arm on board, so it can reach a range of manifold designs, from small ships to their deepsea cousins. It also has a sub-cooler unit to minimise cargo boil-off and was designed to be highly manoeuvrable.

Ordering the vessel allowed Shell to sign up big-name customers such as Carnival Corp and Sovcomflot as LNG bunkering customers.

Speaking at its delivery in 2017, Shell Downstream LNG general manager Lauran Wetemans described the pioneering vessel as “a long-term investment”, which, although it would not pay back in two to three years, would in less than 20 years.

Owner to charterer

In the interim, Shell has moved to charter in tonnage. It now has five in-service LNGBVs and has said it plans to supply about 15 major ports on key international trading routes by the mid-2020s.

In April, it signed a charter deal on a 5,000-cbm newbuilding ordered by Knutsen OAS Shipping in Spain for the Port of Barcelona.

In the same month, Shell was linked to Korea Line LNG. The South Korean owner ordered a $60m LNGBV against a five-year charter — with optional periods worth about $92m — with an unnamed energy major.