Shell has taken the plunge in the US and lined up a large Jones Act LNG bunker vessel (LNGBV) newbuilding.
In a statement that confirmed TradeWinds' report published earlier on Wednesday, Florida-based Crowley Maritime confirmed it has signed a long-term contract to time charter a 12,000 cbm, US-built bunker barge to the energy major's Shell NA LNG.
The company said the 416-foot-long unit will be the largest Jones Act-compliant vessel of its kind.
It will be built at Fincantieri Bay Shipbuilding of Sturgeon Bay, Wisconsin, which is building NorthStar Midstream’s 5,400-cbm LNG bunker barge Clean Canaveral.
Crowley said the vessel becomes the second Jones Act-compliant bunker barge Shell has under long-term charter in the US.
Savannah-bound
Sources told TradeWinds that the barge will be operated out of Savannah, Georgia.
Crowley said the vessel will feature advanced cargo handling capabilities and transfer rates, including "a state-of-the-art solution from Shell and Crowley Engineering Services to flexibly deliver LNG to various types of LNG containment systems" to supply ocean going vessels.
The vessel is expected to be deployed to serve LNG-fueled ships calling at US east coast ports from 2024.
This is a significant piece in Shell’s global LNG jigsaw.
The new bunker barge is being linked to the supply of LNG as a fuel to several dual-fuel containership newbuildings, for which Shell is understood to be competing.
Looking offshore
Separately, Shell is said to be mulling over plans to build an offshore LNG bunkering facility in the US Gulf.
Earlier this year, the energy giant signed time charters with three shipowners on 10 dual-fuelled VLCC newbuildings that will bunker LNG.
Crowley Shipping vice president Tucker Gilliam said: “The new bunker barge will extend Crowley’s commitment to deliver cleaner, innovative solutions to help the shipping industry continue on the path to decarbonisation.”
Shell general manager for downstream LNG Tahir Faruqui said: “Shell is dedicated to growing our LNG bunkering network across key trade routes, and this barge supports our commitment to helping provide our customers with the energy solution they are looking for.”
“The shipping sector is making progress toward decarbonization, and LNG offers immediate emissions reduction with the potential to become a net zero emission marine fuel given the possible roles of bio-LNG and synthetic LNG.”
Action-packed year
Shell has been active on expanding and honing its LNG bunkering fleet this year.
The major backed three LNGBV newbuildings with time charters.
These included an 18,000-cbm vessel contracted by Pan Ocean, a similar-size unit ordered by Korea Line Corp, both of which will be built in South Korea. Shell also struck a deal for a 5,000-cbm vessel that was ordered by Knutsen OAS Shipping for the Port of Barcelona in Spain.
In June, Shell sold off its first LNGBV, the 6,500-cbm Cardissa (built 2017), in a sale-and-leaseback deal with Pan Ocean.
“We remain committed to doubling our LNG bunkering infrastructure on key international trade routes by the mid-2020s,” Shell told TradeWinds at the time of the sale.
Shell currently 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.
