ZIM Signs a 10-year $1bn LNG Bunkering Deal With Shell

ZIM Integrated Shipping Services Ltd, on August 31, 2022, announced the signing of a 10-year LNG (Liquefied Natural Gas) sales and purchase contract valued at over $1bn with Shell to deliver ten 15,000 LNG- fuelled vessels. These vessels will be transported through the company’s flagship, ZIM Container Service Pacific (ZCP), on the Asian Marine to USEC trade.

A statement from ZIM reveals that these vessels are expected to start working during 2023-2024 and will be shipping goods from South Korea and China to the Caribbean and US East Coast.

“LNG is the lowest carbon fuel available at scale today, and it provides ~20% less GHG emissions when compared to conventional marine fuels. In addition to GHG emissions reduction, LNG emits virtually no Sulphur oxides (SOx) and particulate matter (PM) while significantly reducing nitrogen oxide (NOx) emissions,” ZIM said in a statement.

In regard to 20 percent less GHG emissions, the press release added that using liquefied natural gas on ten ships is the same as having 2/10 containers in the fleet with fewer emissions for ZIM.

Eli Glickman, President & CEO of ZIM, says that: “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,” He adds that they are happy to accomplish this long-term supply deal with Shell which will enable ZIM to expand its LNG-powered fleet.

“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”. Steve Hill, the Executive Vice President, Energy Marketing, Shell, acknowledges.

Steve adds that LNG is an excellent lower emission fuel choice for the shipping industry to attain decarbonisation and zero GHG emissions.