Shell and Carnival sign LNG fueling agreement

Lauran Wetemans, Shell’s General Manager Downstream LNG (at left) shaking hands with Michael Tamm, CEO Costa Group Lauran Wetemans, Shell’s General Manager Downstream LNG (at left) shaking hands with Michael Tamm, CEO Costa Group

OCTOBER 3, 2016 — Shell Western LNG B.V. (Shell) has signed a supply agreement with Carnival Corporation & plc to supply liquefied natural gas (LNG) to fuel two of the world's largest passenger cruise ships.

Under the agreement, Shell will supply LNG for the world's first LNG-powered cruise ships, due to start sailing in northwest Europe and the Mediterranean in 2019.

It will be the first cruise industry use of LNG in dual-fuel engines to power ships both in port and at sea.

Lauran Wetemans, Shell's General Manager Downstream LNG, said: "We have been working closely with Carnival to get to this point in our commercial partnership. Working together from an early stage is critical in helping the transition to cleaner LNG cruising. This is a unique partnership that will contribute to a robust and reliable LNG fuel supply chain, along with opportunities for future growth."

"We are committed to reducing our air emissions and improving air quality through various means, including LNG," said Tom Strang, senior vice president of maritime affairs for Carnival Corporation. "We are proud to be on the forefront of advancing LNG as a fuel source for the cruise industry and creating a new model for powering next-generation cruise ships."

Under the terms of the agreement, one Carnival cruise ship will refuel from Shell's special LNG bunker vessel that will load at the Gas Access to Europe terminal in Rotterdam, the Netherlands. The second ship is expected to refuel at one of the ports in the Western Mediterranean.

Today’s announcement was made on the heels of Carnival's September shipbuilding order for three additional next-generation cruise ships that will be fully powered by LNG, bringing its fully LNG-powered ship orders total to seven across four of its 10 global cruise lines. Two of the new LNG-powered ships are designated for the world's most popular cruise brand, Carnival Cruise Line, with delivery dates expected in 2020 and 2022, and one is designated for P&O Cruises UK with an expected delivery date in 2020. The remaining two vessels will also be built for the Costa Cruises and AIDA Cruises brands and are expected to enter service in 2021. 
As part of the framework agreement, Carnival Corporation and Shell have the opportunity to partner together on supplying marine LNG fuel to future LNG-powered vessels or additional itineraries. The overarching agreement enables each Carnival Corporation brand to negotiate individual LNG supply contracts with Shell as new LNG-powered cruise ships begin to launch in coming years.

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