Qatar Petroleum’s Wave LNG Solutions and Shell Gas & Power Developments BV (Shell) signed a framework agreement to develop liquefied natural gas (LNG) marine fueling – or bunkering – infrastructure at strategic shipping locations across the globe.

LNG bunkering provides the shipping industry with a new fuel that helps meet the industry’s environmental and economic objectives.  Increasing numbers 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 Organisation (IMO) announced the introduction of a global 0.5% sulfur cap from 2020.

QP President and CEO Saad Sherida Al-Kaabi said they are pleased to team up with long term partner and industry pioneer, Shell on this important initiative.

We view LNG bunkering as a promising opportunity for LNG to further grow as a clean energy source.’

Al-Kaabi added that LNG demand for bunkering is expected to increase significantly over the coming years.

We believe there is real potential for such demand to reach up to 50 million tonnes per annum by 2030. Achieving this figure requires focused investments and the right partnership model, similar to the one we are establishing today.’

Shell’s Chief Executive Officer Ben van Beurden said that they believe Shell and QP, two of the world’s leading LNG suppliers, 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. He said that Shell is looking forward to working with Qatar Petroleum to increase the availability of LNG as a fuel for transport.

The agreement follows two Memoranda of Understanding (MOU) that Shell and Qatargas signed with industry partners in 2016 to explore LNG bunkering opportunities in the Middle East.  Pursuant to the agreement, Qatar Petroleum and Shell will evaluate the development of LNG bunkering facilities at various locations across Europe, the Middle East and East Asia.

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