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Shell signs deal with Carnival to fuel first 2 fully LNG-powered cruise ships

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Shell signs deal with Carnival to fuel first 2 fully LNG-powered cruise ships

A Royal Dutch Shellplc subsidiary signed an agreement to supply fuel to CarnivalCorp. for the first cruise ships to be fully powered by LNG

Shell WesternLNG BV will supply LNG to the ships, which are designed to use LNG whiledocked and while at sea. In April, the companies signed a deal for Shell to supply LNGto one of Carnival's cruise ships that runs on the fuel while docked.

The two ships to initially receive Shell LNG are expected tolaunch in 2019. Carnival plans to operate a total of seven ships fully poweredby LNG by the end of 2022. Under the framework agreement, the two companieswill negotiate individual LNG supply contracts moving forward. 

The arrangement comes as Carnival looks to reduce its emissionsand increase efficiency, Tom Strang, Carnival's senior vice president ofmaritime affairs, said in a statement. "We look forward to a productivepartnership with Shell, which has the experience and shared commitment to quality,safety and operational efficiency needed to help us bring this innovative LNGinitiative to life with the first fully LNG-powered ships in the global cruiseindustry," he said.