Sabic partners with shell for lng fuel bunkering in uk

Shell announced on 24 July the supply of LNG fuel to SABIC-chartered vessels in Teesport, UK. It is a temporary LNG bunkering facility supporting SABIC, as we are developing for our own jetty at PD Ports in parallel. The permanent solution by SABIC will be completed later this year. SABIC is committed to take the next step in our supply chain in terms of efficiency, cost reductions, and last but not least environmental benefits.

Shell now active in LNG shipping in the UK

In May 2015, Shell bunkered the SABIC-chartered vessels Coral Star & Coral Sticho in Teesport, United Kingdom. This is the first bunkering operation for Shell in the UK, and reflects the collaboration between the two companies. LNG fuel is a new alternative for vessel operators, responding to new sulphur and nitrogen oxide emissions regulations, as part of the Emission Control Areas (ECAs).

Arjan Stavast, Shell LNG Business Development Manager, explains, “We are very proud of achieving this milestone for LNG bunkering. The intensive collaboration between Shell, SABIC, Anthony Veder and contractors Schenk, Unitrove, PD Ports and LIQAL has enabled this success.”

Benefits of the UK LNG bunkering facility

SABIC is pleased with Shell’s temporary bunkering facility in the UK, as our vessels now no longer need to bunker the fuel in Zeebrugge. This will certainly increase efficiency and reduce costs. Simultaneously, we are preparing our own SABIC bunkering facility in Teessside. The solution with Shell is helping us to bridge the time until we have our own LNG bunkering facility in Q4 this year.”

Compared to other marine fuels, LNG drastically cuts both sulphur oxide (SOx) and nitrogen oxide (NOx) emissions, considerably improving the environmental performance of our vessels. With the establishment of a bunkering solution in Teesport, the vessels will sail completely on LNG.

“As a responsible global company, SABIC is committed to providing high-quality products to our customers, while doing all we reasonably can in order to reduce the environmental impact of our operations,” says Paul Ruigt, Category Manager for Shipping & Barging at SABIC Supply Chain Chemicals Europe. “The establishment of the LNG bunkering solution enables us to run the LEG carriers fully on LNG and supports us in meeting our targets on emission reduction. The bunkering solution is part of a bigger project to realize a breakthrough in the application of LNG for short sea shipping by starting and developing a dedicated LNG demand and supply chain in the United Kingdom. This pioneering project is co-financed by the European Union.”

About the vessels

The two LNG-fueled vessels have been chartered from specialist company Anthony Veder, and operate between Teesport (UK) and ports on the European continent. These highly innovative vessels were delivered to SABIC in late 2014. Click here for more information. The vessels carry Liquefied Ethylene Gas (LEG) from SABIC’s Wilton facility on Teesside to manufacturing plants in North-Western Europe and Scandinavia. The chemicals will be used to make a range of everyday items such as food packaging, PVC, detergents, and adhesives.Click here for the fact sheet on the LNG vessels.

Jan Valkier, CEO of ship owner Anthony Veder states, “This first LNG bunkering allows for a continuous safe and reliable bunkering operation for the Coral Star and Coral Sticho. We are proud that these vessels are the world’s first LNG-fuelled LEG carriers. A major achievement for LNG as a marine fuel and our company. We highly appreciate the close collaboration between well-respected partners involved that made this success possible.”