Qatar Petroleum and Shell Form LNG Marine fueling venture
Jun 13, 2017
Qatar Petroleum’s Wave LNG Solutions and Shell Gas & Power Developments B.V. (Shell) today signed a framework agreement to develop liquefied natural gas (LNG) marine fueling – or bunkering – infrastructure at strategic shipping locations across the globe.
LNG bunkering provides the shipping industry with a new fuel that helps meet the industry’s environmental and economic objectives. Increasing numbers of ship owners and operators are turning to LNG over traditional marine fuels in response to tighter sulfur and nitrogen oxide emissions regulations. In October 2016, the International Maritime Organization (IMO) announced the introduction of a global 0.5% sulfur cap from 2020.
Commenting on the occasion, Mr. Saad Sherida Al-Kaabi, Qatar Petroleum’s President and CEO, said: “We are pleased to team up with our long-term partner and industry pioneer, Shell, on this important initiative. We view LNG bunkering as a promising opportunity for LNG to further grow as a clean energy source.”
Mr. Al-Kaabi added: “LNG demand for bunkering is expected to increase significantly over the coming years and we believe there is real potential for such demand to reach up to 50 million tons per annum by 2030. Obviously, achieving this figure requires focused investments and the right partnership model, similar to the one we are establishing today.”
On his part, Mr. Ben van Beurden, Shell’s Chief Executive Officer, said: “As two of the world’s leading LNG suppliers, Shell and Qatar Petroleum have the capability and experience to deliver LNG as a marine fuel to ship owners and operators who must meet tougher emissions regulations from 2020. We look forward to working with Qatar Petroleum to increase the availability of LNG as a fuel for transport.”
Tuesday’s agreement follows two Memoranda of Understanding (MOUs) Shell and Qatargas signed with industry partners in 2016 to explore LNG bunkering opportunities in the Middle East. Pursuant to the agreement signed today, Qatar Petroleum and Shell will evaluate and progress the development of LNG bunkering facilities at various locations across Europe, the Middle East and East Asia.
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Notes to Editors:
- Shell recently announced an agreement with Sovcomflot to supply LNG for the word’s first LNG-powered Aframax crude oil tankers. The ships will operate in the Baltic Sea and Northern Europe, transporting crude oil and petroleum products.
- Shell will supply LNG to the world’s first LNG-powered cruise ships following an agreement with Carnival Corporation & plc. When completed, the two vessels will be the world’s largest passenger cruise ships and will enter service in northwest Europe and the Mediterranean in 2019.
- Shell is the first customer of new infrastructure dedicated to providing LNG for transport at the Gas Access to Europe (Gate) terminal in Rotterdam, The Netherlands. - "Shell in terminal expansion deal to boost LNG fuel for transport". In addition, Shell is also building an innovative sea-going vessel with a capacity of around 6,500 cubic metres that can refuel LNG-powered ships in the Rotterdam area and at other locations.
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