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Shell (SHEL) & Hapag-Lloyd Sign LNG Contract for New Vessels
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Shell plc (SHEL - Free Report) and Hapag-Lloyd, a leading German shipping firm, have signed a multi-year agreement to supply liquefied natural gas (“LNG”) for the latter’s huge dual-fuel container vessels. The objective is to reduce emissions and decarbonize Hapag-Lloyd’s fleet.
The company’s new ultra-large dual-fuel container vessels can carry more than 23,500 twenty-foot equivalent units (“TEU”). Bunkering for these 12 new vessels is scheduled to commence in the latter half of the year, and the LNG will be delivered to the Port of Rotterdam in the Netherlands. These modern ships will be deployed on the Europe-Far East route and halt at major ports like Rotterdam, Hamburg, Singapore and Shanghai.
This agreement forms an essential part of Hapag-Lloyd's commitment to decarbonize its fleet and achieve its 2045 net-zero carbon target. The use of LNG is expected to reduce the vessels’ CO2 intensity by up to 23% compared to conventional fuels. It also helps in almost complete reduction of particle emissions.
Hapag-Lloyd and Shell have also agreed to work together toward finding more low-carbon fuel options, such as liquefied biomethane and hydrogen-based liquefied e-methane, to further reduce carbon emissions. Liquefied biomethane has the potential to cut greenhouse gas emissions by 65-100%.
In connection with the agreement with Shell, Hapag-Lloyd's Senior Director of Global Fuel Purchasing, Jan Christensen, stated that the contract allows them to obtain flexible LNG supply at competitive prices. He has also expressed excitement about the potential collaboration with Shell on additional decarbonization solutions for significant change in the industry.
Shell is working on different techniques to reduce carbon emissions in the shipping industry. It has already completed more than a thousand fuel transfer operations between ships and established 15 LNG fueling locations in 10 countries for their marine customers.
Shell and Hapag-Lloyd have been working together for a long time. They have already made "Brussels Express," the world's first large container ship, convert to gas propulsion. This recent announcement is another step in their ongoing collaboration.
Shell, a multinational energy and petrochemical company headquartered in Netherlands, engages in the exploration, extraction, marketing, and transportation of crude oil, natural gas, and natural gas liquids, and produces gas-to-liquids fuels and other products.
Zacks Rank and Key Picks
Currently, Shell carries a Zacks Rank #3 (Hold). Investors interested in the energy sector might look at some better-ranked stocks like NGL Energy Partners (NGL - Free Report) sporting a Zacks Rank #1 (Strong Buy) and Energy Transfer (ET - Free Report) and Halliburton (HAL - Free Report) both holding a Zacks Rank #2 (Buy).You can seethe complete list of today’s Zacks #1 Rank stocks here.
NGL Energy Partners: NGL Energy Partners is worth approximately $365.07 billion. Its shares have increased 28.7% in the past year.
NGL Energy Partners LP is a limited partnership company that operates a vertically-integrated propane business with three segments — retail propane, wholesale supply and marketing and midstream.
Energy Transfer LP: Energy Transfer LP is valued at around $39.80 billion. ET delivered an average earnings surprise of 11.43% for the last four quarters, and its current dividend yield is 9.49%.
Energy Transfer LP currently has a forward P/E ratio of 8.93. In comparison, its industry has an average forward P/E of 10.40, which means Energy Transfer LP is trading at a discount to the group.
Halliburton: Halliburton is valued at around $33.44 billion. In the past year, HAL stock has increased by 40.2%.
TX-based Halliburton Company, headquartered in Houston, is one of the largest oilfield service providers in the world with a trailing four-quarter earnings surprise of roughly 5.87%, on average.
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Shell (SHEL) & Hapag-Lloyd Sign LNG Contract for New Vessels
Shell plc (SHEL - Free Report) and Hapag-Lloyd, a leading German shipping firm, have signed a multi-year agreement to supply liquefied natural gas (“LNG”) for the latter’s huge dual-fuel container vessels. The objective is to reduce emissions and decarbonize Hapag-Lloyd’s fleet.
The company’s new ultra-large dual-fuel container vessels can carry more than 23,500 twenty-foot equivalent units (“TEU”). Bunkering for these 12 new vessels is scheduled to commence in the latter half of the year, and the LNG will be delivered to the Port of Rotterdam in the Netherlands. These modern ships will be deployed on the Europe-Far East route and halt at major ports like Rotterdam, Hamburg, Singapore and Shanghai.
This agreement forms an essential part of Hapag-Lloyd's commitment to decarbonize its fleet and achieve its 2045 net-zero carbon target. The use of LNG is expected to reduce the vessels’ CO2 intensity by up to 23% compared to conventional fuels. It also helps in almost complete reduction of particle emissions.
Hapag-Lloyd and Shell have also agreed to work together toward finding more low-carbon fuel options, such as liquefied biomethane and hydrogen-based liquefied e-methane, to further reduce carbon emissions. Liquefied biomethane has the potential to cut greenhouse gas emissions by 65-100%.
In connection with the agreement with Shell, Hapag-Lloyd's Senior Director of Global Fuel Purchasing, Jan Christensen, stated that the contract allows them to obtain flexible LNG supply at competitive prices. He has also expressed excitement about the potential collaboration with Shell on additional decarbonization solutions for significant change in the industry.
Shell is working on different techniques to reduce carbon emissions in the shipping industry. It has already completed more than a thousand fuel transfer operations between ships and established 15 LNG fueling locations in 10 countries for their marine customers.
Shell and Hapag-Lloyd have been working together for a long time. They have already made "Brussels Express," the world's first large container ship, convert to gas propulsion. This recent announcement is another step in their ongoing collaboration.
Shell, a multinational energy and petrochemical company headquartered in Netherlands, engages in the exploration, extraction, marketing, and transportation of crude oil, natural gas, and natural gas liquids, and produces gas-to-liquids fuels and other products.
Zacks Rank and Key Picks
Currently, Shell carries a Zacks Rank #3 (Hold). Investors interested in the energy sector might look at some better-ranked stocks like NGL Energy Partners (NGL - Free Report) sporting a Zacks Rank #1 (Strong Buy) and Energy Transfer (ET - Free Report) and Halliburton (HAL - Free Report) both holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NGL Energy Partners: NGL Energy Partners is worth approximately $365.07 billion. Its shares have increased 28.7% in the past year.
NGL Energy Partners LP is a limited partnership company that operates a vertically-integrated propane business with three segments — retail propane, wholesale supply and marketing and midstream.
Energy Transfer LP: Energy Transfer LP is valued at around $39.80 billion. ET delivered an average earnings surprise of 11.43% for the last four quarters, and its current dividend yield is 9.49%.
Energy Transfer LP currently has a forward P/E ratio of 8.93. In comparison, its industry has an average forward P/E of 10.40, which means Energy Transfer LP is trading at a discount to the group.
Halliburton: Halliburton is valued at around $33.44 billion. In the past year, HAL stock has increased by 40.2%.
TX-based Halliburton Company, headquartered in Houston, is one of the largest oilfield service providers in the world with a trailing four-quarter earnings surprise of roughly 5.87%, on average.