Qatargas, the United Arab Shipping Company (UASC) and Shell have signed a Memorandum of Understanding (MOU) to explore the development of liquefied natural gas (LNG) as a marine fuel in the Middle East region.
This is the second agreement to be signed by Qatargas and Shell in the recent months and will enable research into new markets for LNG to be used for propulsion within the Middle East. The trio of companies will also look into the opportunities for converting UASC’s existing vessels to enable use of LNG.
In order to meet increasing environmental standards, the partners hope to increase not just the number of ships able to use LNG but also the availability of it. USAC has already received thirteen of seventeen newbuilds over the past sixteen months and are keen to take delivery of further ships that are LNG-ready to enable greener shipping. Once the infrastructure is made globally available, the number of ships able to use LNG is expected to increase.
LNG supplies are expected to be made available from Qatargas 4, a joint venture between Qatar Petroleum and Shell Gas B.V., with United Arab Shipping Company Line potentially using the fuel for its recently built container ships.
The MOU was signed at a ceremony attended by Qatargas Chief Executive Officer, Khalid Bin Khalifa Al-Thani, United Arab Shipping Company Chief Executive Officer, Jorn Hinge and Managing Director and Chairman of Qatar Shell Companies, Michiel Kool.
The signing of this agreement reinforces the commitment and innovative approach that is being undertaken to identify and develop new market opportunities through collaboration and strategic partnership.
The partners hope to fulfil aspirations of supplying the Merchant Fleet with clean burning fuel before the end of the current decade.
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