Qatar Petroleum and Shell signed a shareholder agreement to establish 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. paves the way for the establishment of a joint venture company owned equally by both parties, Qatar Petroleum said in a statement.
The new company’s principal business activities will include the procurement of LNG, setting up LNG bunkering infrastructure (storage and bunker vessels) at various strategic locations around the world, and facilitating the sale of LNG as a marine fuel to end customers around the world.
In his remarks at the signing ceremony, Saad Sherida Al-Kaabi , the Minister of State for Energy Affairs, the president and 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.”
He added that LNG demand for bunkering is expected to grow significantly over the coming years, and believes 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,” he said.
Shell’s CEO Ben van Beurden , added that 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,” Ben van Beurden said.
An increasing number 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 percent sulfur cap from 2020.
Wave LNG Solutions was established by Qatar Petroleum for the purpose of market development and investment in LNG as a transportation fuel, especially for the marine transportation sector.