Qatargas and industry leaders to develop new markets for LNG

23/02/2016 08:38 AST

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 CEO Khalid bin Khalifa Al Thani, Maersk Group CEO Nils S Andersen and Shell International Trading Middle East Limited General Manager, Danny Leek.

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 BV, with Maersk Line potentially using the fuel for its merchant vessels.

Saad Sherida Al Kaabi 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.”

Khalid bin Khalifa Al Thani 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”.

Nils S Andersen said: “The possible use of LNG as fuel for ships presents an opportunity to reduce both SOx emissions and in reducing the transport sectors 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.”

The Peninsula