Qatar Petroleum and Shell subsidiaries signed a Shareholder Agreement to create a company that would provide global LNG bunkering services. The agreement signed by Qatar Petroleum’s ‘Wave LNG Solutions’ and ‘Shell Gas & Power Developments B.V.’ aims to establish a joint venture company owned equally by both parties, subject to customary regulatory approvals.
The new company’s main business activities will include the procurement of LNG, setting up LNG bunkering infrastructure at various strategic locations, and enabling the sale of LNG as a marine fuel to end customers globally.
Commenting on the agreement, Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President & CEO of Qatar Petroleum, said:
We see LNG bunkering as a promising solution for the shipping industry in light of a continuously evolving regulatory environment, and as an important opportunity to enhance LNG’s position as a clean energy source, particularly in maritime transportation
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He added that LNG demand for bunkering is expected to grow significantly in the future, as there is potential for the demand to reach 35 million tons per annum by 2035. This would require focused investments and collaboration.
For his side, Ben van Beurden, Royal Dutch Shell’s Chief Executive Officer, believes that the shipping industry is starting making the very necessary efforts to reduce emissions from vessels.
LNG is already playing an important role as the cleanest, and an affordable, alternative to traditional marine fuels available today. That is why we look forward to building on our strong long-term partnership with QP, expanding the LNG marine fuel network and creating a safe supply chain
More and more ship owners and operators are choosing LNG over traditional marine fuels, in order to comply with upcoming sulphur and nitrogen oxide emissions regulations.
