Qatar Petroleum and Shell sign LNG bunkering venture agreement
- Published
by Admin
Subsidiaries of Qatar Petroleum and Shell, respectively Wave LNG Solutions LLC and Shell Gas & Power Developments B.V., on Wednesday (18 September) signed a shareholder agreement to establish a company that would provide global liquefied natural gas (LNG) bunkering services.
The joint venture company will be owned equally by both parties, subject to customary regulatory approvals.
The new company’s principal business activities will include procurement of LNG, setting up of LNG bunkering infrastructure (storage and bunker vessels) at various strategic locations around the world, while facilitating the sale of LNG as a marine fuel to end customers around the world.
“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,” said His Excellency Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President & CEO of Qatar Petroleum.
“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.
“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.”
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.”
Photo credit: Qatar Petroleum
Published: 19 September, 2019
