Qatar Petroleum And Shell Ink Agreement To Establish Global LNG Bunkering Venture
A Shareholder Agreement to establish a company that would provide LNG bunkering services was signed today by Qatar Petroleum and Shell today. This agreement that is signed by Qatar Petroleum’s Wave LNG Solutions and Shell Gas & Power Developments B.V. will make way for the new joint venture company that will be owned by both the parties equally.
The main business activities that the company will perform are the procurement of LNG, putting up of LNG bunkering infrastructure at places all over the world and promoting the sale of LNG as a marine fuel in the world.
In his remarks at the signing ceremony, His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President & CEO of Qatar Petroleum said, “We are pleased to establish this new venture with Shell, our long-term partner, and industry pioneer, by combining our joint efforts and shared expertise to develop this important initiative. 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.”
His Excellency Mr. Al-Kaabi added, “LNG demand for bunkering is expected to grow significantly over the coming years, and we believe there is a real potential for such demand to reach 35 million tons per annum by 2035. This requires focused investments and collaboration among all industry players to provide the required solutions our customers are looking for. In addition, the right partnership model, similar to the one we are establishing today with our partner, Shell, will also be pivotal in maturing this business.”
Mr. Ben van Beurden, Royal Dutch Shell’s Chief Executive Officer said, “The shipping industry is starting to make the very necessary strides 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.”
With LNG bunkering, the marine industry gets a fuel that not only helps meet the industry’s economic objectives but also environmental. With the strict emission regulations that have been introduced, a large number of ship operators are moving from the use of traditional marine fuels to LNG. A global 0.5% sulfur cap from 2020 was announced by the IMO in 2016.
For the development of the market and to invest in LNG as a transportation fuel for the shipping sector, Qatar Petroleum established Wave LNG Solutions LLC.