Shell applies for LNG bunkering licence

Shell has announced the company is applying for an LNG bunkering licence as it stressed Gibraltar’s ‘tremendous potential’ in this sector.

The global energy company outlined plans to invest and further build its relationship with the Rock, at the the Maritime Week Gibraltar conference yesterday.

Shell’s Head of Business Development Europe Arjan Stavast told delegates that should an LNG licence be granted, any LNG bunkering will be entirely separate from activities related to the LNG power plant and LNG fuel supply at the port will only be carried out by ship-to-ship transfer.

The legislative framework for the licensing of LNG bunkering is already in place in Gibraltar and the code of conduct has been drafted.

“We want to keep investing in LNG, and there is tremendous potential for LNG bunkering in Gibraltar,” said Mr Stavast.

In May of this year, Gibraltar’s LNG-fuelled power plant officially opened. Under a supply agreement signed between Shell and the Government of Gibraltar in 2016.

Shell delivers gas via ship to an LNG terminal for use in the plant which supplies electricity to the local population.

Mr Stavast highlighted Shell’s commitment to LNG-fuelled shipping and told conference delegates a small-scale LNG carrier supplies LNG to the Gibraltar terminal approximately twice a month during the night, to minimise any disruption to port activities.

“Following the successful work done by Shell with the Gibraltar Government to create the LNG terminal for the supply of fuel to our new generating station, we now look forward to working with Shell on the development of the Gibraltar Port as a venue for LNG bunkering,” said the Minister for the Port, Gilbert Licudi.

“LNG is a cleaner fuel with significantly less emissions than conventional marine fuels. Any steps taken to improve environmental efficiency must be positive news. We acknowledge the trust and confidence that Shell continues to place on the Port of Gibraltar.”

The conference also included contributions from Tom Strang, SVP Maritime Affairs, Carnival Corporation, and Claudia Beumer, Sales and Marketing Manager, Wartsila Netherlands BV.