Qatar Petroleum’s Wave LNG Solutions and Shell Gas & Power Developments are looking to develop liquefied natural gas (LNG) marine fueling infrastructure at strategic shipping locations across the globe.
Under the framework agreement, signed on June 13, the parties said that they plan to evaluate and progress the development of LNG bunkering facilities at various locations across Europe, the Middle East and East Asia.
The deal follows two Memoranda of Understanding (MOUs) Shell and Qatargas signed with industry partners in 2016 to explore LNG bunkering opportunities in the Middle East.
“LNG demand for bunkering is expected to increase significantly over the coming years and we believe there is real potential for such demand to reach up to 50 million tons per annum by 2030. Obviously, achieving this figure requires focused investments and the right partnership model, similar to the one we are establishing today,” Saad Sherida Al-Kaabi, Qatar Petroleum’s President and CEO, said.
The framework agreement comes on the back of the increasing numbers of ship owners and operators who are turning to LNG over traditional marine fuels in response to tighter sulfur and nitrogen oxide emissions regulations.
“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,” Ben van Beurden, Shell’s Chief Executive Officer, said.
In October 2016, the International Maritime Organization (IMO) announced the introduction of a global 0.5% sulfur cap from 2020.
LNG bunkering provides the shipping industry with a new fuel that helps meet the industry’s environmental and economic objectives.