Energy major Shell is to base an LNG bunker barge newbuilding on the US east coast to fuel cruise vessels.
Shell Trading (US) says it has finalised a long-term charter agreement with Quality Liquefied Natural Gas Transport (Q-LNG Transport) for a 4,000-cbm LNG bunker barge (LBB) that will be owned and built by Q-LNG Transport, and operated by Harvey Gulf International Marine.
Q-LNG is 70% owned by Harvey Gulf chief executive Shane Guidry and 30% by Harvey Gulf.
“As the first of its kind to be based in the United States, the ocean-going LNG bunker barge will supply LNG to marine customers along the southern East Coast of the US and support growing cruise line demand for LNG marine fuel,” Shell said.
A Shell spokesman tells TradeWinds that the company has LNG offtake agreements from "various sources in the US" for when the LBB goes into service in 2020. He said these include possible sources such as the Elba Island Liquefaction Terminal in Savannah, Georgia.
Shell, which recently put its first LNG bunker vessel into operation in Rotterdam, has signed up with Carnival Corp to supply LNG to the world’s first LNG-powered cruise ships in northwest Europe and the Mediterranean in 2019.
The company has also been working with the cruiseship giant on its planned US operations.
The major said its new US bunker barge will be highly efficient and manoeuvrable and feature an innovative transfer system enabling it to load LNG from big or small terminals and bunker a variety of customers.
Shell Integrated Gas and New Energies director Maarten Wetselaar said: “This investment in LNG as a marine fuel for the US will provide the shipping industry with a fuel that helps meet tougher emissions regulations from 2020.
“Our commitment in the Americas builds on Shell’s existing LNG bunkering activities in Singapore and Europe, as well as recently announced plans in the Middle East and gives us the ability to deliver LNG as a marine fuel to customers around the world.”
