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Carnival Cruise Line inks agreement with Shell to fuel LNG-powered ships

Wed 08 Nov 2017 by Rebecca Moore

Carnival Cruise Line inks agreement with Shell to fuel LNG-powered ships
Carnival Cruise Line’s new LNG-powered cruise ships will be fuelled via Shell’s LNG Bunker Barge

Carnival Cruise Line has signed an agreement with Shell NA LNG, LLC (Shell) to be its supplier of LNG to power North America’s first fully LNG-powered cruise ships.

Under this framework agreement, Shell will supply Carnival Cruise Line with fuel for its two new LNG-powered ships expected to launch in 2020 and 2022 and to be homeported in North America.

As part of the agreement, the two ships will be fuelled through Shell’s LNG Bunker Barge (LBB) – part of Shell’s strategic plan to develop a global LNG bunkering network. The ocean-going LBB, which is designed to support growing cruise line demand for LNG as marine fuel, will be the first of its kind in the US and will allow these ships to refuel with LNG at ports along the southern US East Coast.

“This agreement is a significant stepping stone in our relationship with Carnival Corporation building upon our previous LNG marine fuel supply agreements in Europe,” said Shell NA LNG, LLC president Tahir Faruqui. “It also marks a milestone as we continue to establish the marine LNG fuel market in the US as a credible part of the global marine fuel mix.”

Carnival Corp senior vice president of maritime affairs Tom Strang said “We are proud to be on the forefront of advancing LNG as a fuel source for the cruise industry. One of the keys to establishing LNG as a standard for powering cruise ships is building out an extensive, safe and reliable infrastructure across the globe for this clean burning fossil fuel. We are looking forward to working closely with Shell as they help to bring LNG to North America in what we hope will be the first step in building a strong foundation for the future of LNG fuel supply for cruise ships in the region.”

This agreement builds on the partnership established between Carnival Corporation's AIDA Cruises brand and Shell in April 2016 to supply its AIDAprima ship with LNG to power the vessel while docked.

The partnership was extended in Q3 2016 when Carnival Corporation signed an agreement with Shell to supply LNG for the first of its next-generation LNG ships from its European AIDA Cruises and Costa Cruises brands.

A statement explained that as part of the framework agreement, Carnival Corporation and Shell have the opportunity to partner together on supplying marine LNG fuel to future LNG-powered vessels or additional itineraries. The overarching agreement enables each Carnival Corporation brand to negotiate individual LNG supply contracts with Shell as new LNG-powered cruise ships begin to launch in coming years.

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