Bunker supplier Titan has taken Shell to task for opting for conventional fuel with scrubbers over LNG-fuelling on its latest batch of tanker newbuildings.
In a post on LinkedIn Titan asked: “Shell are you forfeiting your right to be a leader of the energy transition? With great power comes great responsibility.”
Dutch fuel supplier Titan cites TradeWinds report from 10 October which detailed that Shell has booked 10 conventionally-fuelled, 50,000-dwt tankers at China’s Guangzhou Shipyard International.
The vessels, which deliver from 2027 onwards, are reported priced at $48m each and will be fitted with scrubbers.
Brokers have said a beauty contest is underway for shipowners to take on the newbuildings against charters to the major.
But in an unusually upfront blast against the energy major, Titan spoke directly to Shell.
Titan said: “You carefully positioned yourself as an industry leader in the movement towards more sustainable and cleaner marine fuels.
“With your size, you hugely influence the industry and are a strong advocate for LNG as a marine fuel,” Titan added, saying it was surprised to read of the recent order.
“This move seems to contrast the agenda both our companies were pushing for, to make the maritime industry cleaner by investing in bunkering infrastructure to accommodate the decarbonisation of shipping.”
Titan said the LNG pathway has evidence of reduced emissions and adoption has increased recently, both in terms of cost and infrastructure availability.
“We’re seeing positive trends across the board — prices are stabilising, bunkering networks are expanding, and industry and governmental appetite for cleaner solutions is growing.
“With bio-LNG [biomethane] already available and e-LNG [e-methane] on the horizon, we believe now is the time for continued investment in these cleaner alternatives.”
Titan continued: “Given your leadership role, this decision raises questions about how it aligns with your commitment to decarbonisation,” adding that it is “genuinely interested” in hearing more about the major’s strategy for balancing these choices and how it views the LNG pathway in the bigger picture.
But the fuel supplier said that adding scrubber-fitted conventional fuel tankers to the current fleet sends a “strange signal”.
“Let’s continue pushing the boundaries and make sure shipping doesn’t take a step back,” Titan said.
TradeWinds has contacted Shell, who previously declined to comment on the newbuildings, for a response to the post.
The major has been a pioneer of LNG dual-fuelled tonnage, famously contracting 10 of the first VLCCs to be capable of using the fuel along with some of the earliest aframaxes.
It has also built out the LNG bunkering infrastructure and this week was reported to be back in the market for fresh LNG bunker vessels.
Brokers said the capital expenditure of adding LNG dual-fuelling to MR tankers is unlikely to have stacked up for the major in the current high-price environment at shipyards.
