Under the agreement, the joint venture between the two companies will facilitate the sale of LNG as a marine fuel to end customers around the world
Image: Qatar Petroleum and Shell sign agreement to establish global LNG bunkering venture. Photo: courtesy of Qatar Petroleum.
Qatar Petroleum and British-Dutch oil and gas company Shell have entered into an agreement to establish a liquified natural gas (LNG) bunkering venture.
The creation of a joint venture company, which will be owned equally by both parties, is subject to customary regulatory approvals. The new company will provide global LNG bunkering services.
Qatari Minister of State for Energy Affairs and the president and CEO of Qatar Petroleum said: “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.
“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.”
The agreement to form the joint venture has been signed by Qatar Petroleum’s Wave LNG Solutions and Shell Gas & Power Developments.
Established by Qatar Petroleum, Wave LNG Solutions focuses on market development and investment in LNG as a transportation fuel, especially for the marine transportation sector.
Business activities of the joint venture company
The principal business activities of the new company 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.
Royal Dutch Shell CEO Ben van Beurden 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.”
Recently, Qatar Petroleum issued the ‘Invitation to Tender’ for the engineering, procurement, and construction (EPC) works at Ras Laffan Industrial City, an industrial hub located 80km north of Doha, Qatar.
The tender was issued for the construction of additional liquid products storage and loading facilities and Mono-Ethylene Glycol (MEG) storage and distribution facilities, which will be part of the North Field Expansion (NFE) project.