On June 13, Qatar Petroleum’s Wave LNG Solutions and Shell Gas & Power Developments B.V. (Shell) signed a framework agreement to develop liquefied natural gas (LNG) marine fueling – or bunkering – infrastructure at strategic shipping locations across the globe.
The company focuses on LNG, as it is a 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, noted that LNG bunkering is a promising opportunity for LNG to grow as a clean energy source. As LNG demand for bunkering is expected to increase significantly over the coming years, the industry has to promote focused investments and right partnership models, he also underlined.
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.
Recently, Shell also announced an agreement with Sovcomflot to supply LNG for the word’s first LNG-powered Aframax crude oil tankers and it will supply LNG to the world’s first LNG-powered cruise ships following an agreement with Carnival Corporation.
