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Shell and Hapag-Lloyd sign multi-year LNG supply agreement

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Meenal Datar

Membership specialist

Shell Western LNG B.V and shipping company, Hapag-Lloyd has announced the signing of a multi-year agreement for the supply of liquefied natural gas (LNG) to Hapag-Lloyd’s ultra large dual-fuel container vessels of 23,500+ twenty-foot equivalent units (TEU).

Using LNG enables Hapag-Lloyd to immediately reduce the CO2 intensity of these vessels by up to 23% compared to conventional fuels. Additionally, the use of LNG supports the almost complete reduction of particle emissions. This is another important step for Hapag-Lloyd to reduce emissions and decarbonise its fleet in line with its goal of becoming net zero carbon by 2045.

Tahir Faruqui, general manager, head of downstream LNG at Shell says: ‘We are delighted to have partnered with Hapag-Lloyd on this important initiative. 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.’

‘We are pleased to share the execution of this long-term supply agreement. 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. 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,’ adds Jan Christensen, senior director of global fuel purchasing at Hapag-Lloyd.

 

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