LNG Bunkering

Shell launches landmark Caribbean LNG Bunkering

Given coordinated global efforts by the maritime sector to move away from its present reliance on traditional fuels in a drive to reach ambitious net zero emissions by 2050; it’s encouraging to see that the Caribbean now has its first Liquefied Natural Gas (LNG) bunkering hub, forming part of a worldwide network.

In March, Shell North America LNG and ZIM Integrated Shipping Services successfully bunkered the ZIM SAMMY OFER container vessel with lower carbon LNG. This vessel was bunkered at Kingston Freeport Terminal Ltd (KFTL) in Jamaica.

Tahir Faruqui, Shell’s General Manager, Global Downstream LNG, explained to CM why the landmark Kingston bunkering operation was so important, and he highlighted several key reasons: It was the first time a simultaneous operation (SIMOPS) was completed with LNG bunkering in Jamaican waters.

Kingston, Jamaica, is a new LNG bunkering location for Shell, expanding its global LNG bunkering network to 16 locations, across 11 countries. To date, Shell has already achieved over 1,000 safe ship-to-ship bunkering operations to its customers.

Dual-fuel

The ZIM SAMMY OFER is the first in a series of ten 15,000 TEU LNG dual-fuel containerships which ZIM plans to deploy on their ZCP trade line.

For these vessels, ZIM recently signed a ten-year marine LNG sales and purchase agreement with Shell.”

In this context, Mr. Faruqui sees the new LNG bunkering hub as part of a much wider plan by Shell to reduce global carbon emissions. “At Shell we support our shipping sector customers in realizing their decarbonization ambitions. The International Maritime Organization (IMO) has set a target to reduce the total

emissions from shipping by at least 50% by 2050 compared to 2008 levels, and carbon intensity by at least 40% by 2030, and 70% by 2050.

Target

Shell’s target is to be a net-zero emissions energy business by 2050, this includes both emissions from our own operations and emissions from the products we sell to customers.

Acknowledging that LNG is not the only solution in terms of low- or lowercarbon fuel as some carriers are betting on methanol or even green ammonia, Mr. Faruqui says: “The future of shipping will likely involve different parts of the sector using different fuels. This includes LNG which offers a credible pathway to start reducing emissions today.”

Adding: “At Shell, we recognize that in order to decarbonize the maritime sector, we need to consider a range of fuels, technologies and solutions such as LNG, biofuels, methanol and hydrogen-derived fuels. Shipping’s future will involve different parts of the sector using different fuels. We continue to work closely with key stakeholders in the sector to identify the best pathways to a net-zero future.”

Shell has worked closely with the Port Authority of Jamaica in setting up the new operation. Explaining the collaboration between the parties, Mark Regis, Country Chairman and Head of Corporate Relations, English and Dutch Caribbean, says: “The local maritime, port and customs authorities all played a key role in supporting this milestone opportunity to make Jamaica one of the region’s main LNG bunkering hubs.

“Our recent collaboration with local authorities and ZIM not only enabled the safe SIMOPS bunkering operation at KFTL; but also expanded Shell’s LNG bunkering network to the Caribbean. With every new bunkering location added to our footprint, we are demonstrating the role for LNG as the lowest-carbon fuel available at scale today.”

Supported

The Maritime Authority of Jamaica (MAJ) has also supported Shell and ZIM in enabling LNG bunkering in Jamaica. “We are proud to be able to offer and

promote LNG bunkering in Jamaica,” says Rear Admiral Peter Brady, DirectorGeneral at MAJ. “Decarbonization of the shipping industry is critical and, being readily available today, LNG is a key part of the transition to lower-carbon marine fuels. This offering will not only grow local businesses but also encourage companies to embrace emissions reduction solutions.”

So, could Shell add further Caribbean LNG bunkering hubs? Answers Mr. Regis: “Shell remains open to supplying LNG to the Caribbean region. Our hope is that the recent offshore bunkering operation

in Jamaica signals the beginning of a larger regional transition to cleaner fuels, both for the maritime sector and other industries.”

At present, ZIM is Shell’s only customer in Jamaica, but Mr. Regis is optimistic about additional business. He says: “Shell remains open to supplying LNG to new customers in the region, in line with our global strategy to provide more and cleaner energy.”

The Jamaica LNG bunkering hub is supplied with LNG by the 18,664 gt Avenir Achievement from Elba Island (Georgia).