Shell to supply Carnival with LNG to fuel world's first LNG-powered cruise ships

L-R: Lauran Wetemans, Shell’s general manager downstream LNG shaking hands with Michael Tamm, ceo Costa Group during agreement signing ceremony L-R: Lauran Wetemans, Shell’s general manager downstream LNG shaking hands with Michael Tamm, ceo Costa Group during agreement signing ceremony

Shell Western LNG BV has signed an agreement with Carnival Corporation & plc to supply liquefied natural gas (LNG) to fuel two Costa Group newbuilds - the world's first LNG-powered cruise ships currently under construction and due to start sailing in northwest Europe (for AIDA Cruises) and the Mediterranean (for Costa Cruises) in 2019.

This will be the first time LNG in dual-fuel engines will be used in the cruise industry to power ships both in port and at sea.

Under the terms of the agreement Shell says the first Carnival Corp 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.

Carnival Corp & plc reports that the ships will also utilize Shell’s infrastructure in cruise ports to refuel with LNG throughout their itineraries.

This builds on the agreement with Carnival in April 2016 to supply AIDAprima ship with LNG to power the vessel while docked.
    
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.'

Tom Strang, svp of maritime affairs for Carnival Corporation said, 'We are committed to reducing our air emissions and improving air quality through various means, including LNG and 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.'

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. In total the group is building seven such vessels for delivery between 2019 and 2022: two apeice for Carnival Cruise Line, AIDA and Costa Cruises and one for P&O Cruises.

 

Posted 03 October 2016

© Copyright 2018 Seatrade UBM (UK) Ltd. Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Seatrade UBM (UK) Ltd.

Mary Bond

Managing director publishing and content at Seatrade