QP, Shell Ink Deal to Use LNG as Marine Fuel

Press release

Published June 15th, 2017 - 10:01 GMT

The number of ship owners and operators who prefer to use LNG has increased

Qatar Petroleum (QP) on Wednesday signed an agreement with Shell Gas & Power Developments B.V. (Shell) to develop infrastructure in various strategic locations around the world and to use liquefied natural gas (LNG) as marine fueling venture.

“LNG bunkering provides the shipping industry with a new fuel that helps meet the industry’s environmental and economic objectives,” QP said in a statement.

The demand for natural gas is expected to increase to 50 million tonnes annually by 2030, QP managing director and CEO Saad Sherida Al-Kaabi said.

The number of ship owners and operators who prefer to use LNG has increased, compared to those who prefer “traditional” marine fuels, as the former reduces sulfur and nitrogen oxide emissions, the statement added.

In October 2016, the International Maritime Organisation (IMO) specified a maximum sulfur emission limit of 0.5% of total fuel content starting from 2020.

The international demand of the gas reached 265 million tonnes in 2016, according to a previous study by Royal Dutch Shell.

Qatar currently produces 77 million tonnes of gas annually, making it the largest producer in the world with around 30% market share.

Source : mubasher

Background Information

Qatar Petroleum

Qatar Petroleum (QP) is a state-owned public corporation established by Emiri Decree No. 10 in 1974. It is responsible for all phases of the oil and gas industry in the State of Qatar.

The principal activities of QP, its subsidiaries and joint ventures are the exploration, production, local and international sale of crude oil, natural gas and gas liquids, refined products, synthetic fuels, petrochemicals, fuel additives, fertilizers, liquefied natural gas (LNG), steel and aluminium.

QP’s strategy of conducting hydrocarbon exploration and development is through Exploration and Production Sharing Agreements (EPSA) and Development and Production Sharing Agreements (DPSA) concluded with major international oil and gas companies.

Company Profile

Shell UAE

Shell in UAE is involved in every stage of the petroleum value chain – from the discovery and production of oil and gas to the distribution, marketing and retailing of oil, gas and petrochemicals. We trade with customers throughout UAE and neighbouring regions from individual entrepreneurs and small businesses to major industry and multi-national companies.