Shell and Qatargas sign second deal to develop LNG as marine fuel
Qatargas, United Arab Shipping Company (UASC) and Shell signed a Memorandum of
Understanding (MOU) to explore the development of LNG as a marine fuel in the Middle East
region. This is the second such agreement signed by Qatargas and Shell in as many months and
establishes another core partnership within the shipping industry. Through the joint
relationship the partners will explore the development of new markets for LNG and the
conversion of UASC’s existing vessels providing the opportunity to use a cleaner fuel.
The MOU envisages LNG supplies for this pioneering initiative to be made available from
Qatargas 4, a joint venture between Qatar Petroleum and Shell Gas B.V., with United Arab
Shipping Company Line potentially using the fuel for its recently built container ships.
“LNG as a marine fuel is gaining momentum in the deep sea transportation industry as the best
alternative to meeting increasing environmental standards,” said Saad Sherida Al-Kaabi,
Chairman of Qatargas Board of Directors. “This agreement demonstrates our commitment to
building LNG fueled vessels and the supply system to support it. Further to our commitment to
pioneering new LNG applications and in preparation to fulfilling any upcoming regulatory
requirements, we believe that this direction by Qatargas and its industry partners is the right
path to support a cleaner environment”.
Michiel Kool, Managing Director and Chairman of Qatar Shell Companies, said: “Shell is
delighted to work in partnership with Qatargas and United Arab Shipping Company to create
new market development opportunities for the use of LNG as a marine fuel in the Middle East
region from its Qatargas 4 venture. Shell has been a pioneer in this area with our investments in
LNG for transport infrastructure in Europe and the US, and we look forward to now deploying
our expertise to create a regional hub in the Middle East in collaboration with two very strong
global partners based in the region, Qatargas and United Arab Shipping Company”.
https://www.ngvjournal.com/shell-and-qatargas-sign-second-deal-to-develop-lng-as-marine-