ZIM, Shell Sign Large-Scale Long-Term LNG Bunkering Agreement
ZIM Integrated Shipping Services Ltd., a global container liner shipping company, announced the signing of a ten-year marine liquefied natural gas (LNG) sales and purchase agreement with Shell NA LNG, LLC (Shell) for the supply of ten LNG-fueled vessels to be deployed on ZIM's flagship ZIM Container Service Pacific (ZCP), on Asia-USEC trade.
These ten 15,000 TEU vessels are scheduled to start operation in 2023-2024, transporting goods from China and South Korea to the US East Coast and the Caribbean.
The container segment alone accounts for approximately 23% of overall shipping emissions, and with increased global trade of products, these emissions must be addressed as soon as possible.
LNG is the lowest-carbon fuel accessible at scale today, emitting 20% less greenhouse gases than conventional marine fuels. In addition to lowering GHG emissions, LNG emits almost no sulphur oxides (SOx) or particulate matter (PM) while drastically reducing nitrogen oxide (NOx) emissions.
For ZIM, on the basis that LNG emits 20% less GHG emissions when compared to conventional marine fuels, using LNG on these ten ships is equivalent to having two out of the ten vessels in the fleet with zero emissions.
Eli Glickman, ZIM President & CEO, stated:
"With the addition of significant LNG-powered capacity to our fleet, beginning in 2023, we have positioned ZIM as a leader in carbon intensity reduction among global liners. We are pleased to execute this long-term supply agreement with Shell to secure LNG at competitive terms and look forward to partnering with a global industry leader such as Shell as we take an important step to ensure our fuel sourcing is well planned and of the highest quality. Our growing LNG-powered fleet will enable ZIM to be more carbon and cost-efficient while improving our competitive position, particularly on strategic Asia-USEC trade, and allowing customers to reduce their carbon footprint."
Steve Hill, Executive Vice President, Energy Marketing at Shell, said:
"We would like to congratulate ZIM for introducing the world's first LNG-fueled Very Large Container Ship (VLCS) fleet to operate on the Asia-North America shipping route. We are delighted to collaborate with them on their impressive efforts to reduce emissions in their maritime supply chain. Decarbonisation of the shipping industry must begin today, and LNG is a lower emission fuel choice currently available in meaningful volumes, and via liquefied biomethane and liquified e-methane, offers a credible pathway to net zero GHG emissions."