HOW SHELL LNG FUEL AND SOVCOMFLOT ARE FULFILLING THE POTENTIAL OF LNG IN GLOBAL SHIPPING HOW HAS THE JOURNEY BEEN TOWARDS THE ADAPTATION OF LNG AS CLEANER-BURNING FUEL?With Sovcomfl ot and Shell pioneering the adoption of LNG fuel for large-capacity tankers, the shipping industry took a transformational step towards a new milestone, similar to those in the past such as the switch from wind and sail to coal, and then from coal to the use of heavy fuel oil.

“ WE FIRMLY BELIEVE THAT LNG SHOULD BECOME A GROWING PART OF THE FUEL MIX ADOPTED BY GLOBAL SHIPPING” IGOR TONKOVIDOV, CEO, SOVCOMFLOT

WHAT WAS THE OUTCOME OF THE COLLABORATION BETWEEN SHELL LNG AND SOVCOMFLOT?In 2015 Sovcomflot, together with Shell, took an environmental initiative to introduce cleaner-burning LNG as a primary fuel for large-capacity oil tankers not tied to fixed routes or set timetables. Following extensive collaboration between the two companies, this initiative came to fruition in 2018, with the delivery of the Gagarin Prospect series of six pioneering LNG-fuelled Aframax tankers, two of which operate on time charter to Shell.

DID SHELL LNG PROVIDE NECESSARY BUNKERING INFRASTRUCTURE?Critical to the success of this initiative was the willingness of Shell to provide the necessary infrastructure to bunker tankers with LNG fuel. In October 2018, Shell’s specialised LNG bunkering vessel Cardissa delivered her first ship-to-ship bunkering to the lead ship of Sovcomflot’s ‘Green Funnel’ tanker series, Gagarin Prospect. This was also the first ship-to-ship bunkering of LNG in the Port of Rotterdam.

WHAT PROVED THE READINESS OF LNG AS A FUEL FOR TANKER OPERATIONS?A remarkable achievement of the partnership between Shell and Sovcomflot was the design, testing, and bringing online of a functioning bunkering system for large-capacity tankers. This proved to the industry at large that converting tanker operations to the use of LNG fuel was feasible, both technically and economically.

WILL LNG PLAY AN ESSENTIAL ROLE IN MAKING THE SHIPPING INDUSTRY CLEANER?We firmly believe that LNG should become a growing part of the fuel mix adopted by global shipping. It offers strong environmental benefits and exceeds the regulatory requirements of the IMO’s Sulphur Cap 2020. We see LNG as the optimal solution for large-scale shipping in sensitive geographies with tight emissions controls, including some of the world’s most high-traffic areas such as the Baltic and North Seas.

HAS IT BEEN REWARDING TO BE ON THE FRONTIER OF THE INDUSTRY?This pioneering step has received widespread industry recognition and acclaim, including the ‘Environmental Award’ at Lloyd’s List Global Awards 2018, presented to Sovcomflot for this ‘Green Funnel’ initiative and also subsequently, in 2019, when Gagarin Prospect was named ‘Ship of the Year’ at the Marine Propulsion Awards and ‘Next Generation Ship’ at Nor-Shipping.

1 “Well-to-wake” greenhouse gas emissions reductions are based on current ISO 9001 standards for analysis and EPA & GREET emissions values. “Greenhouse gas emissions” include CO2, methane and N2O.

2 Particulate emissions from natural gas combustion can be reduced by up to 90 percent.

“ THESE ACHIEVEMENTS WOULD NOT HAVE BEEN POSSIBLE WITHOUT OUR STRONG AND LASTING PARTNERSHIP WITH SHELL, AND WE ARE THANKFUL TO THE COMPANY FOR DRIVING THE CLEANER AGENDA ACROSS THE TANKER MARKET WITH US AND, IN TURN, HELPING TO UNDERPIN THE CURRENT AND FUTURE ENVIRONMENTAL SUSTAINABILITY OF OUR INDUSTRY.”

ABOUT SOVCOMFLOTSovcomflot is the largest shipping company in Russia and a world leader in energy shipping. We are focused on offshore services, liquefied gas transportation and the conventional shipping of crude oil and petroleum products. The company has 146 vessels in operation, with a combined deadweight of over 12.8 million tonnes. Sovcomflot services several large-scale oil and gas projects in Russia and abroad, including Sakhalin-2, the first LNG production facility established in Russia. Another of the company’s specialties is operating in challenging environments. Today, Sovcomflot is the world’s largest owner and operator of ice-class vessels.

Find out more about SCF at www.sovcomflot.ru/en/

ABOUT SHELL LNG FUELGlobal greenhouse gas emissions from marine vessels can be significantly reduced by switching to LNG as a fuel. Shell LNG can help improve air quality from ships, compared to heavy fuel oil, as it contributes virtually zero Sulphur emissions and can help reduce particulates and NOx emissions. Shell LNG offers a cost comparative solution for ship-owners compared to traditional fuel oils.

Find out more about Shell LNG Fuel at www.shell.com/gasfortransport