Cruise giant Carnival Corp has signed a potential four-year deal for the supply of LNG bunkers for its latest newbuilding.
The deal is for an initial two years with an option to extend for a similar period, according to Nasdaq-listed Stabilis Solutions, which will supply the LNG.
The fuel will be used to bunker the latest addition to the Carnival Cruise Line fleet – the 183,200-gt Carnival Jubilee (built 2023) – which is due to begin sailing from Galveston, Texas, beginning in December 2023.
Under the terms of the contract, Stabilis will supply firm LNG deliveries on a ratable basis from its owned liquefaction facility in Texas over the initial two-year contract.
“Stabilis continues to develop a leading LNG marine bunkering platform at strategic ports across North America,” said company president and CEO Westy Ballard.
“We are excited to partner with Carnival Corporation, a company committed to the decarbonisation of their fleet through the adoption of LNG and alternative fuels.
“We also look forward to working closely with the Port of Galveston as it becomes a leading LNG bunkering hub,” he added.
Tom Strang, senior vice president of maritime affairs at Carnival Corp, said that as part of the company’s ambition to achieve net-zero carbon ship operations by 2050, it is investing in LNG-powered vessels because LNG delivers “immediate greenhouse gas emission reductions and is the best available market-ready fuel to help cut ship greenhouse gas emissions now”.
“We were the first to introduce LNG-powered cruise ships into the North American market and we are delighted to partner with Stabilis to further our decarbonisation strategy by helping to power the next-level fun awaiting guests aboard the highly anticipated Carnival Jubilee,” he said.
Ballard said he expected the global fleet of LNG-fuelled vessels to “increase materially” over the next three years, as operators seek to reduce carbon emissions through the adoption of lower-cost sustainable fuel sources.
“Our proven supply network and logistics assets position Stabilis to serve this significant, growing addressable market, which remains in the early innings of a multi-year expansionary phase,” he said.
“Our relationship with Carnival is an important next step in further solidifying our position as a premier marine LNG fuel provider serving ports across North America.”
Carnival, which operates from 14 US and two Australian homeports, currently operates 25 ships and is in a period of growth with the addition of two ships over the next year.
