LNG development in the Middle East

Through the joint partnership the companies will explore the development of new markets for LNG to be used as a propulsion fuel for merchant vessels.

In the hope that this will then contribute to improving the environmental footprint of those currently reliant predominantly on heavy fuel oils.

Saad Sherida Al-Kaabi, chairman of Qatargas Board of Directors, said: “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.”

The MOU envisages LNG supplies for this 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.

“This cooperation between Qatargas, Maersk Group and Shell represents an important step in developing LNG as a viable fuel for maritime transportation,” said Nils S. Andersen, Maersk Group’s chief executive officer.

He continued: “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.”

The MOU was signed 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.

Michiel Kool, managing director and chairman of Qatar Shell Companies, concluded: “LNG fuel is a new alternative for ship and vessel operators responding to stricter emission control standards.”

“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.”