Regional LNG: W?rtsil?, Shell ink deal to promote use of LNG as marine fuel

W?rtsil?, a marine industry solutions provider, and Shell Oil Company have signed a joint co-operation agreement (JCA) last month aimed at promoting and accelerating the use of liquefied natural gas (LNG) as a marine fuel.

Under the agreement Shell will supply low cost and low emissions LNG fuel to W?rtsil? natural gas powered vessel operators, and other customers. The JCA will focus first on supplies from the US Gulf Coast, and then later expand their efforts to cover a broader geographical range.

Gas fuelled marine engines are seen as being a logical means for ship owners and operators to comply with increasingly stringent environmental legislation.

This agreement aims at increasing and easing the availability of natural gas for marine engine use, as well as developing the supply chain and infrastructure to facilitate the bunkering of LNG fuel.

The two companies will jointly move these developments to marine markets in order to enhance its rapid introduction and use.

In addition to the environmental benefits that LNG fuel offers, the shipping industry is increasingly looking to gas as a means of reducing operating costs. With fossil fuel prices, and especially the cost of low carbon marine fuel, likely to continue to escalate, gas is an obvious economic alternative.

?Clean, safe natural gas represents a true shipping paradigm shift; years ago it was sail to steam, then came the move from steam to diesel, and now it?s a new era for gas propulsion,? says Jaakko Eskola, Group Vice President, W?rtsil? Ship Power.

?We are pleased to work with W?rtsil? to move forward with this significant step in introducing LNG-powered vessels into the US market, providing a clean, abundant and affordable fuel option,? said David Lawrence, Shell?s executive vice president Exploration and Commercial. (romel/roffie)