Qatar Petroleum’s Wave LNG Solutions and Shell Gas & Power Developments BV (Shell) yesterday signed a framework agreement to develop liquefied natural gas (LNG) marine fuelling – or bunkering – infrastructure at strategic shipping locations across the globe.
New fuel objectives:
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 sulphur and nitrogen oxide emissions regulations.
In October 2016, the International Maritime Organisation (IMO) announced the introduction of a global 0.5% sulphur cap from 2020.
Long term partnership:
Qatar Petroleum’s president and CEO Saad Sherida al-Kaabi 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.”
“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 50mn tonnes per year by 2030. Obviously, achieving this figure requires focused investments and the right partnership model, similar to the one we are establishing today,” al-Kaabi added.
Shell chief executive officer Ben van Beurden 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.”
The agreement follows two memoranda of understanding Shell and Qatargas signed with industry partners in 2016 to explore LNG bunkering opportunities in the Middle East.
Pursuant to the agreement signed yesterday, 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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