Qatar Petroleum, Shell Sign LNG Bunkering Pact
Qatar Petroleum and Shell have signed an agreement to establish a company that would provide global LNG bunkering services, the Qatari company said September 18.
The agreement paves the way for the establishment of a joint venture company owned equally by both parties. According to Qatar Petroleum, 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.
“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,” said Qatar Petroleum CEO Saad Sherida al-Kaabi.
“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 35mn metric tons/year 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,” he said.
Shell CEO Ben van Beurden said 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.”