Energy major Shell has signed a long-term agreement with shipping line Siem Car Carriers to supply LNG for two newbuild vessels.
Under the terms of the deal Shell NA LNG and Shell Western LNG, subsidiaries of Royal Dutch Shell, will supply fuel for two new car carriers that are due to enter service in 2019.
“This agreement is an important development for Shell’s growing LNG fuels business. We are pleased to be working with SIEM Car Carriers to provide a cleaner burning fuel and look forward to future opportunities for collaboration,” a Shell spokesperson commented.
Once operational the vessels will be used to transport Volkswagen Group vehicles to North America from Europe.
Volkswagen mulls LNG switch
When they enter operation the new vessels will be amongst the first LNG-fuelled car carriers to travel intercontinentally and both Siem Car Carriers and its partner Volkswagen are keen to use them as a test-case for further adoption in LNG fuelling within its fleet.
“The possibility of changing other vehicle transport vessels chartered by Volkswagen over to LNG operation will depend on the availability of the necessary infrastructure,” Thomas Zernechel, head of Volkswagen Group logistics, said.
Siem builds on first mover status
Siem Car Carriers is a subsidiary of Cayman Islands-registered industrial company Siem which owns and operates a range of shipping and transportation businesses.
Siem’s marine support vessel, the Siem Thiima recently became the first LNG-fuelled in the southern hemisphere will now assess the viability of further adoption of LNG-fuelling for its fleet.