Global container liner shipping company ZIM Integrated Shipping Services Ltd (ZIM) has signed a 10-year marine LNG sales and purchase agreement valued at more than $1 billion with Shell.
Under the agreement, Shell will supply 10 LNG-fuelled vessels that will be deployed on ZIM's flagship ZIM Container Service Pacific (ZCP), on the Asia to USEC trade, the company said today (31 August).
As previously reported, the 15,000 TEU vessels are expected to enter into service during 2023-2024 and will be transporting goods from China and South Korea to US East Coast and the Caribbean.
‘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,’ said Eli Glickman, ZIM President & CEO. ‘Our growing LNG-powered fleet will enable ZIM to be more carbon and cost efficient, while improving our competitive position, particularly on the strategic Asia to USEC trade, and allowing customers to reduce their carbon footprint.’
Steve Hill, Executive Vice President, Energy Marketing at Shell, added: ‘We would like to congratulate ZIM for introducing the world's first LNG-fuelled 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 liquefied e-methane, offers a credible pathway to net zero GHG emissions.’