Energy major Shell has boosted its LNG carrier newbuilding book to a whopping 24 vessels by signing time-charter agreements with three shipowners.
Shell said it had inked deals on six ships, two each with Knutsen LNG, Pan Ocean and investors advised by JP Morgan Asset Management. The company declined to comment on whether it is holding any further options.
The 174,000-cbm LNG newbuildings, which are understood to have been confirmed from optional slots held by the major, will be built at Hyundai Heavy Industries and Hyundai Samho Heavy Industries.
Knutsen LNG: 9 vessels
JP Morgan: 7 vessels
Korea Line: 4 vessels
Pan Ocean: 4 vessels
Yards: Hyundai Heavy Industries and Hyundai Samho Heavy Industries
Delivery dates: 2022 onwards
Pricing: started at $187m to $188m each, with latest ships reported at $198m
They will all be equipped with X-DF engines, boil-off management plants, air lubrication systems and shaft generators for auxiliary power, along with optimised hull and design speed.
The vessels will be delivered from 2023 onwards.
Hunger
Shell has a seemingly insatiable hunger for LNG newbuilding tonnage.
But industry watchers said the rising price of LNG newbuildings — with South Korean yards quoting $210m-plus for vessels — will have made these latest options look very appealing.
No price was given for the vessels. But in an exchange statement Korea Shipbuilding & Offshore Engineering, which controls the Hyundai yards grouping, priced four of the ships at KRW 911bn ($792m) or $198m each.
The major first jumped in with a deal on eight vessels in December 2019, signing for four vessels with Knutsen, two with Korea Line and a further pair with JP Morgan.
In August, the three owners declared another two optional LNG newbuildings each against charters with the energy major. At the time, Knutsen's vessels were listed as priced at $187.9m each.
Four more vessels were confirmed in December 2020 — two with Pan Ocean and one each with Knutsen and JP Morgan.
Emissions focus
Outgoing global head of Shell shipping and maritime Grahaeme Henderson said: “These ships will be some 35% more efficient than required by the energy efficiency design index and 20% more than required by the annual efficiency ratio, delivering significant emission reductions for our time charter fleet.”
Henderson added: “Working with partners across shipping sectors is key to achieving our ambition to help accelerate the industry’s progress towards net-zero emissions.
"We will continue to work with shipbuilders, equipment manufacturers and owners to look for opportunities to incorporate new emission reduction technologies as they become available.”
Shell said that as part of its time-chartered fleet, each ship’s performance will be optimised by analysing real-time data from the ships, and draught and trim software, JAWS, to enable further efficiencies and emission reductions.
