Crowley and Shell to Build and Charter Largest LNG Bunker Barge in U.S.
New Vessel from Fincantieri Bay Shipbuilding Will Provide Ocean Carriers the Opportunity for Reduced Emissions and Lower Greenhouse Gases.
The largest Jones Act-compliant vessel of its kind
(JACKSONVILLE, Fla.; Sept. 1, 2021) – Crowley Maritime Corporation has signed a long-term time charter with Shell NA LNG, LLC, (“Shell”) providing for the building and operation of a new, U.S.-built, LNG bunker barge. Upon construction, the barge will be the largest Jones Act-compliant vessel of its kind, helping to expand current network capacity and meet demands for cleaner energy.
“The new bunker barge will extend Crowley’s commitment to deliver cleaner, innovative solutions to help the shipping industry continue on the path to decarbonization,” said Tucker Gilliam, vice president, Crowley Shipping. “Orders for ships fueled by liquefied natural gas continue to rise, and the vessel will provide Shell an innovative and reliable service to meet demands for more sustainable energy sources.”
The 416-foot-long barge will feature advanced technologies in cargo handling capabilities and increased transfer rates, including a state-of-the-art solution from Shell and Crowley Engineering Services to flexibly deliver LNG to various types of LNG containment systems. The transformative design will offer capacity for 12,000 m3 (3.17 million gallons) and product supply equipment to fully serve ocean carriers.
The vessel becomes the second Jones Act-compliant bunker barge Shell has under long-term charter in the U.S.
It is expected to be deployed to serve LNG-fueled ships that call on ports on the U.S. East Coast starting in 2024.
“Shell is dedicated to growing our LNG bunkering network across key trade routes, and this barge supports our commitment to helping provide our customers with the energy solution they are looking for,” said Tahir Faruqui, general manager, Global DLNG for Shell. “The shipping sector is making progress toward decarbonization, and LNG offers immediate emissions reduction with the potential to become a net zero emission marine fuel given the possible roles of bio-LNG and synthetic LNG.”
The vessel will be constructed at Fincantieri Bay Shipbuilding of Sturgeon Bay, Wisconsin.
“This additional LNG barge will serve as another demonstration of our commitment to building and servicing sustainable maritime endeavors, both in the United States and globally,” said Dario Deste, president and CEO of Fincantieri Marine Group. Fincantieri Bay Shipbuilding is poised to deliver a different LNG barge later this year to a different client.
Aligned to Crowley’s actions under its New Energy division in support of the company’s sustainability commitment, the expansion of LNG capacity will allow Crowley and its customers to realize more immediate emissions reductions and fast-track the transition to new energy sources that reduce greenhouse gas emissions.
Crowley Maritime Corporation is a privately held, U.S.-owned and -operated maritime, energy and logistics solutions company serving commercial and government sectors with more than $2.5 billion in annual revenues, over 160 vessels mostly in the Jones Act fleet and approximately 6,300 employees around the world – employing more U.S. mariners than any other company. The Crowley enterprise has invested more than $3 billion in maritime transport, which is the backbone of global trade and the global economy. As a global ship owner-operator and services provider with nearly 130 years of innovation and a commitment to sustainability, the company serves customers in 35 nations and island territories through four business units: Crowley Logistics, Crowley Shipping, Crowley Solutions and Crowley Fuels. Additional information about Crowley, its business units and subsidiaries can be found at www.crowley.com.
Notes to editors:
- Shell has significantly invested in LNG for its long-term charter fleet. Shell expects to take delivery of 16 dual-fuel LNG carriers, 10 LNG dual-fuel Aframax crude oil tankers, and four new LNG dual-fuel oil products tankers from 2021.
- Shell continues to expand its global network for LNG bunkering, with 10 LNG bunker vessels currently under contract and plans to add further to its growing global fleet.
- Earlier this year, Shell completed its 500th marine LNG ship-to-ship operation to date.
- According to SPHERA’s second lifecycle GHG study, the use of LNG as a marine fuel shows GHG benefits of up to 23% on a Well-to-Wake (WtW) basis and up to 30% on a Tank-to-Wake (TtW) basis compared with current oil-based marine fuels
- On an engine technology basis, the absolute WtW emissions reduction benefits for gas-fueled engines compared with VLSFO-fueled ships are between 14% to 23% for 2-stroke slow-speed engines, and between 6% to 14% for 4-stroke medium-speed engines
- On a TtW basis, emissions-reductions benefits for LNG-fuelled engines compared with VLSFO-fuelled engines are between 20% to 30% for 2-stroke slow speed engines, and between 11% to 21% for 4-stroke medium speed engines
- LNG produces 92% less sulphur oxides (SOx), 90% less particulates (PM), and significantly reduces nitrogen oxides (NOx) when compared to heavy fuel oil (HFO).
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