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Zim signs US$1 billion LNG supply agreement with Shell

Author: Posttime:2022-09-07 08:56:24

ISRAELI-FLAG carrier Zim has signed a US$1 billion Liquefied Natural Gas (LNG) supply agreement with Shell, reports Fort Lauderdale's Maritime Executive.

It comes as construction is now underway on the first Zim LNG dual-fueled containership being built in South Korea.
The agreement with Shell calls for the supply of marine LNG to Zim for its new fleet of 10 LNG dual-fuel containerships, which will begin operating in 2023 and 2024 between China, South Korea, the 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," said Zim CEO Eli Glickman.
"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."
The first block was recently positioned at the shipyard in South Korea for Zim's 15,000-TEU LNG containership.
Zim entered into a long-term charter agreement in February 2021 with Seaspan, which is building the ten 15,000-TEU ships.
Korean-based Samsung Heavy Industries was commissioned by Seaspan to build these vessels. In addition to the first 10 LNG vessels, Zim and Seaspan expanded with a class of 7,000-TEU dual-fuel container vessels.
The companies initially announced a long-term charter for 10 vessels in this class in July 2021, with Zim later exercising an option for five additional vessels from Seaspan.
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