ZIM has signed a marine liquefied natural gas (LNG) sales and purchase agreement worth over US$1 billion with Shell.
According to the agreement, which will run for ten years, Shell will supply ten LNG-fuelled vessels that will be deployed on ZIM Container Service Pacific (ZCP) on the Asia to USEC trade, with LNG.
These ten 15,000 TEU container ships are expected to enter into service during 2023-2024 and will transport goods from China and South Korea to US East Coast and the Caribbean.
“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,” claimed Eli Glickman, president and CEO of the Israeli container carrier.
Glickman said, “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.”
For ZIM the use of this fuel in these ten ships is equivalent to having two out of ten vessels in the fleet with zero emissions, according to a statement.
“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,” said Steve Hill, executive vice president, energy marketing at Shell.
“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,” he continued.
It is important to note that the agreement between the two companies may also cover other transactions in which ZIM LNG vessels could be deployed.
