Shell Orders Two LNG Tankers

The gas and power division of Royal Dutch/Shell ordered two additional liquefied natural gas (LNG) carriers to support its growing global LNG business. Shell International Gas Limited ordered a membrane-type carrier from South Korea's Daewoo Shipbuilding & Marine Engineering and a moss spherical tank carrier from Japan's Mitsubishi Heavy Industries. Shell did not disclose the price for the orders, but industry sources said the market level for a typical LNG carrier was around $175 million. The two new vessels have been secured against the background of a growing portfolio of Shell LNG projects around the world which require shipping capacity and will help supply growing demand for LNG. Chris Evans, Shell Gas & Power's Vice President for Global LNG told delegates at the 13th International LNG Conference the vessels would provide the company with shipping capacity to support its global LNG strategy. Those projects include new markets in India, the Americas, and the Mediterranean, he said. The new orders are in addition to the two vessels already on order from the Mitsubishi shipyard for delivery in 2003 and a third vessel, the Galeomma, which is on short-term contract until the first quarter of 2002. Shell is scheduled to take delivery from Daewoo in 2003 and from Mitsubishi in 2004. Shell International Trading & Shipping (STASCO) will man and operate the vessels. - (Reuters)