Qatargas and industry partners lead the way to develop new markets for liquefied natural gas
Feb 02, 2016
Doha - Qatar, 2 February 2016: Qatargas, the Maersk Group and Shell signed a Memorandum of Understanding (MOU) to explore the development of LNG as a marine fuel in the Middle East region.
The MOU was signed at a ceremony attended by Saad Sherida Al-Kaabi, Chairman of Qatargas Board of Directors, Qatargas Chief Executive Officer, Khalid Bin Khalifa Al-Thani, the Maersk Group Chief Executive Officer, Nils S. Andersen and Shell International Trading Middle East Limited General Manager, Danny Leek.
This event highlights the commitment and innovative approach that is being undertaken by industry leaders Qatargas, Shell and Maersk to identify and develop new market opportunities through collaboration and strategic partnership.
Through the joint relationship the partners will explore the development of new markets for LNG to be used as propulsion fuel for merchant vessels. This can contribute to improve the environmental footprint of merchant shipping which currently relies predominantly on heavy fuel oils. The MOU envisages LNG supplies for this pioneering initiative to be made available from Qatargas 4, a joint venture between Qatar Petroleum and Shell Gas B.V., with Maersk Line potentially using the fuel for its merchant vessels.
Commenting on this important milestone, Saad Sherida Al-Kaabi, Chairman of Qatargas Board of Directors, said: “We are very proud to continue to pioneer new and novel opportunities to utilize Qatar’s LNG. We are also proud to partner with industry leaders such as Maersk and Shell to create potential new market opportunities for Qatar’s LNG and, at the same time, provide ship operators around the globe with a cleaner fuel alternative to the heavy fuel oils currently in use.”
“As part of the National Vision 2030, the State of Qatar is committed to playing a significant role in preserving and protecting the environment as well as researching and investing in new and innovative ways to achieve this”Mr. Al-Kaabi added.
Khalid Bin Khalifa Al-Thani, Qatargas Chief Executive Officer, said: “Qatargas is committed to leading the industry in pioneering new applications for LNG and maintaining the highest environmental standards. We have recently celebrated a global first by proving the use of LNG as a reliable marine fuel in the converted diesel engines of our time chartered vessel MV “Rasheeda”, now fitted with an M-Type Electronically Controlled – Gas Injection System. The signing of this MOU is an important milestone in this journey. We are looking forward to continued close work and collaboration with our partners Shell and Maersk to develop the use of LNG to its full potential.”
Nils S. Andersen, Maersk Group Chief Executive Officer, said: “This cooperation between Qatargas, Maersk Group and Shell represents an important step in developing LNG as a viable fuel for maritime transportation. The possible use of LNG as fuel for ships presents an opportunity to reduce both SOx emissions and in reducing the transport sector’s CO2 foot print.”
Michiel Kool, Managing Director and Chairman of Qatar Shell Companies said: “Shell is delighted to work in partnership with Qatargas and Maersk to create new market development opportunities for the use of LNG as a marine fuel in the Middle East region from its Qatargas 4 venture. LNG fuel is a new alternative for ship and vessel operators responding to stricter emission control standards. Shell has been a pioneer in this area with our investments in LNG for transport infrastructure in Europe and the US, and we look forward to now deploying our expertise to create a regional hub in the Middle East in collaboration with Qatargas, the largest LNG producer in the world and Maersk, the world’s largest shipping container company.”
The partners will continue to work diligently to develop LNG as Marine Fuel and fulfil aspirations of supplying the Merchant Fleet with clean burning fuel before the end of the current decade.
As the largest international investor in the country, we are committed to deliver long term value for Qatar and Shell for decades to come.
Sustainability at Qatar Shell is about delivering energy in a responsible way to meet Qatar and the world’s growing needs.
Qatargas, established in 1984, pioneered the Liquefied Natural Gas (LNG) industry in Qatar and today is the largest producer of LNG in the world with an annual production capacity of 42 million tonnes per annum (MTPA) from its world-class facilities in Ras Laffan Industrial City, Qatar. Since first production in 1996, Qatargas has successfully delivered cargos to 28 countries and is committed to meeting the world’s demand for safe, reliable and clean energy. Through its operational excellence Qatargas is adding value to its production chain, contributing to the Qatari economy and Qatar’s National Vision to ensure efficient energy supplies for the country, creating new markets and contributing to the local community. In addition to the LNG facilities, Qatargas operates the Jetty Boil-Off Gas facility, the Laffan Refinery, - one of the largest condensate refineries in the world and the Ras Laffan Terminal on behalf of all participants.
For media enquiries please contact:
Mariana Diaz, Tel: +974 3320 6421 MDiaz@qatargas.com.qa
Thajudeen Aliar, Tel: +974 3340 6474 TAliar@qatargas.com.qa
About Qatar Shell
Shell is the largest international investor in Qatar having invested USD 21 billion over the past decade. Qatar Petroleum and Shell have jointly delivered two of the largest energy projects in the world in Ras Laffan Industrial City. Pearl Gas to Liquids (GTL) is the world’s largest GTL plant and cements Qatar’s position as the GTL capital of the world. At an investment of up to USD19 billion it represents the largest single investment in the Shell Group’s global portfolio.
The Qatargas 4 Liquefied Natural Gas project (QP (70%) and Shell (30%) combines Shell’s global leadership in LNG with Qatar’s position as the world’s largest LNG supplier.
Shell has established a world-class research and development facility and a learning centre, the Qatar Shell Research & Technology Centre, at the Qatar Science & Technology Park. Shell has a financial commitment to invest up to USD100 million on programmes in support of energy and the environment at the Centre over a 10-year period.
Qatar Shell contributes to the objectives of the Qatar National Vision 2030 not only through our economic investments, but also through our investments in national talent and capability development, both internally through the professional development of our Qatari employees, and externally through our extensive Corporate Social Responsibility programme, positively impacting Qatar, in partnership with Qatari institutions.
More information about the Qatar Shell can be found at www.shell.com.qa