Shipping

BP’s shipping business, which completed about 1,400  voyages to or from U.S. ports in 2017, has worked to reduce  its carbon dioxide emissions and make its operations more  sustainable while also supporting the growth of natural gas. 

For example, BP Shipping recently designed and built 26  new product and crude tankers that are over 20 percent  more fuel-efficient than its previous generation tankers. It’s  also building six new liquefied natural gas (LNG) tankers  that will be roughly 25 percent more fuel-efficient than their  predecessors. 

The new LNG tankers will feature hull designs that make  them faster and easier to maneuver, along with state-of- the-art engines that utilize evaporated or “boil-off” gas from  cargo tanks as fuel. With a thermal efficiency of around 52  percent, they will be the most efficient marine engines on  the market, reducing CO2, nitrogen oxide, sulfur oxide and  particulate emissions when operating in gas mode. 

“These will be the largest LNG vessels BP Shipping has ever  owned or operated,” says BP Shipping Americas President  Lambros Klaoudatos. “They’ll play a vital role in the  company’s future, supporting our shift to gas.” 


Once delivered, the new LNG tankers will help increase  BP’s global LNG portfolio by an additional 4.4 million metric  tons per year. In America, the vessels will service BP’s  20-year liquefaction contract with the LNG terminal  in Freeport, Texas. 

“BP continues to expand the reach of our LNG business and  serve our customers with flexible solutions by leveraging  our scale, integration and relationships,” says Klaoudatos.  “The expansion of the gas fleet allows us both to manage  risks and to grow our own capability for the future while  remaining at the forefront of this rapidly growing and important global business.” 

BP Shipping first began transporting oil and gas products  more than a century ago. In fact, it is BP’s oldest  continuously operating business unit, with a history that  dates to 1915, when the British Tanker Company started  carrying products from Persia. 

Today, it brings the company’s oil and gas cargoes to market  while providing technical and maritime expertise for its  business activities. 
In 2017, BP Shipping moved more than 47 million metric  tons of cargo to or from U.S. ports. By way of perspective,  47 million metric tons of concrete would be enough to build  seven Hoover Dams. 

The business relies on a combination of company-operated,  time-chartered and spot-chartered vessels. 

BP also owns a 25 percent stake in the Alaska Tanker  Company (ATC), which it helped create in 1999 to  consolidate all of its Alaskan crude oil shipping requirements  into one operating company. ATC’s four tankers deliver  crude oil from the Valdez Marine Terminal in southeast  Alaska to facilities on the West Coast and in Hawaii. 

BP Shipping works hard to monitor the safety, not only  of its own vessels, but also of third-party vessels moving  BP cargoes. As part of those efforts, it runs a ship-vetting  and port/terminal inspection program in which BP teams  rigorously assess vessels based on a range of criteria,  including management, operational, crewing and structural standards. 

In 2018, the Chamber of Shipping of America recognized  the crews of 15 BP vessels for their excellent safety  performance, honoring them with the prestigious Jones  F. Devlin Award. To receive the award, a merchant marine  vessel must operate for at least two years without a crew  member losing a full turn at watch due to an occupational  injury.