Shell to provide LNG for Hapag-Lloyd’s 23,500+ TEU newbuilds

German liner major Hapag-Lloyd has signed a multi-year agreement for the supply of liquefied natural gas (LNG) with Shell Western LNG B.V (Shell).

The LNG is intended for Hapag-Lloyd’s twelve ultra-large dual-fuel container vessels currently under construction at the South Korean shipyard Daewoo Shipbuilding & Marine Engineering (DSME).

Bunkering for these twelve 23,500+ TEU vessels is expected to commence during the second half of 2023 and LNG will be supplied in the Port of Rotterdam.

The ships will be deployed on Europe-Far East routes and call at major ports including Rotterdam, Hamburg, Singapore, and Shanghai.

Hapag-Lloyd said that by using LNG it will be able to cut the CO2 intensity of these vessels by up to 23% compared to conventional fuels and almost completely reduce particle emissions. The company aims become net zero carbon by 2045.

Shell is investing in a range of fuels, technologies and solutions that aim to decarbonise shipping, including LNG. Through an extensive network of 15 LNG bunkering locations in 10 countries globally, Shell has carried out over 1,000 ship-to-ship bunkering operations to its marine customers, the company said.

In addition to the LNG supply agreement, Shell and Hapag-Lloyd have entered into a strategic collaboration agreement intended to accelerate the further decarbonisation of alternative marine fuels. Initial focus will be given to developing the potential of additional low carbon fuels solutions including liquefied biomethane and the hydrogen-based fuel liquefied e-methane. Liquefied biomethane as a marine fuel has the potential to reduce greenhouse gas emissions by between 65% and 100%.

“Shipping decarbonisation must accelerate and, as the lowest-carbon fuel available at scale today, LNG is a key part of the transition to lower-carbon marine fuels. As we look to the future, we are committed to working with leading shipping companies like Hapag-Lloyd to establish the credible pathways to net zero,” Tahir Faruqui, General Manager, Head of Downstream LNG at Shell, said.

“Hapag-Lloyd has finalised a contract with Shell which secures flexible LNG supply at competitive terms. Furthermore, we are excited about our agreement with Shell to explore further decarbonisation opportunities as it allows both businesses to drive impactful change in the industry,” Jan Christensen, Senior Director Global Fuel Purchasing at Hapag-Lloyd.

“Collaborations like this are crucial in helping us deliver our sustainability strategy while also improving emissions in maritime shipping. Ultimately, this enables our customers to decrease their carbon footprint as well.”

DSME has already launched the first giant vessel from the series, the Baltic Express. A Hapag-Lloyd Spokesperson told Offshore Energy that the dual-fuel LNG-powred ship would be delivered at the end of the second quarter of 2023.

The ship, like its five sister vessels, will be powered by MAN Energy System’s ME-GI engines.

This duo said that the deal builds on the long-standing collaboration, which over the past years included the LNG bunkering of the Brussels Express, the world’s first large container ship that was converted to gas propulsion.