Qatar Petroleum and Shell to expand LNG marine fuel availability
Sep 18, 2019
Qatar Petroleum’s Wave LNG Solutions (QP) and Shell Gas & Power Developments B.V. (Shell) today agreed a partnership aimed at accelerating the development of LNG fuelling infrastructure around the world.
His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President & CEO of Qatar Petroleum and Ben van Beurden, Royal Dutch Shell’s Chief Executive Officer during the signing ceremony in Doha.
Doha, Qatar: The joint venture between the two companies will invest in LNG marine fuelling, bunkering vessels and other infrastructure in key locations to meet the needs of marine customers and help to reduce emissions of the global shipping industry. These locations will leverage existing Qatar Petroleum and Shell supply positions and complement current Shell marine LNG bunkering locations in Europe, Asia and North America.
“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, which is why we are continuing to invest with confidence in our own chartered LNG fleet,” said Ben van Beurden, Royal Dutch Shell’s Chief Executive Officer.
“As two of the world’s leading LNG suppliers, we look forward to building on our strong long-term partnership, expanding the LNG marine fuel network and creating a safe supply chain.”
LNG is imported and exported at more than 150 locations worldwide and demand for gas as a shipping fuel could reach 35 million tonnes of LNG a year by 2035.
Shell currently supplies LNG to the world’s first LNG-powered cruise ship – owned by Carnival Corporation plc – and the world’s first LNG-powered Aframax oil tanker, the Sovcomflot vessel Gagarin Prospect. Shell also recently announced an agreement to charter a fleet of new LNG-fuelled crude oil and products tankers, as part of its drive to decarbonise shipping.
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Notes to Editors:
- Gas is one of the few energy sources that can meet growing demand while reducing emissions from industry, the built environment and transport, when replacing coal or liquid fuels. It will continue to play a critical role in sectors where demand is anticipated to grow, such as the long-distance transportation of people and goods.
- Today’s announcement follows a framework agreement Shell and Wave LNG Solutions signed in 2017 and two memoranda of understanding Shell and Qatargas signed with industry partners in 2016 to explore LNG bunkering opportunities in the Middle East.
- The International Maritime Organization has set an ambition to reduce total annual greenhouse gas emissions from shipping by at least 50% by 2050, compared to 2008.
- Compared to some marine fuels, LNG can cut greenhouse gas emissions from ships by up to 21%, according to a “well-to-wake” emissions study by consultants Thinkstep.
- Shell has a Net Carbon Footprint ambition, covering emissions from its own operations and those of its customers when using energy products sold by Shell. Shell aims to cut the Net Carbon Footprint of its energy products by around half by 2050, on a grams of carbon dioxide equivalent per megajoule consumed basis. As an interim step, by 2035, Shell aims to reduce this by around 20%, in step with society’s drive to meet the goals of the Paris Agreement on climate change.
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