Qatar, Shell to Promote Bunkering Jointly
Qatar Petroleum’s (QP) Wave LNG Solutions and Shell Gas & Power Developments signed a framework agreement June 13 to develop LNG bunkering infrastructure in Europe, the Middle East and east Asia.
In October 2016, the UN's International Maritime Organisation (IMO) announced the introduction of a global 0.5% sulphur cap from 2020, giving a boost to demand for LNG in shipping.
QP CEO Saad Sherida Al-Kaabi said: “We are pleased to team up with our long-term partner and industry pioneer, Shell, on this important initiative. We view LNG bunkering as a promising opportunity for LNG to further grow as a clean energy source.” He said by 2030 bunkering demand could reach as much as 50mn mt/yr, with the caveat that this would require "focused investments and the right partnership model, similar to the one we are establishing today.”
Shell CEO Ben van Beurden said: “As two of the world’s leading LNG suppliers, Shell and Qatar Petroleum have the capability and experience to deliver LNG as a marine fuel to ship owners and operators who must meet tougher emissions regulations from 2020. We look forward to working with Qatar Petroleum to increase the availability of LNG as a fuel for transport.”
Shell CEO Ben van Beurden (left) and his QP counterpart Saad Sherida Al-Kaabi (Photo credit: QP)
The agreement comes a week after the peninsula was isolated by some other countries in the region – Egypt, Saudi Arabia, United Arab Emirates and Bahrain – on grounds that it has sponsored terrorist organisations, claims that Qatar denies. They expelled Qatari diplomats and closed land and sea borders, expelling Qatari residents. Iran however has been airlifting cargoes of food to Qatar, while Kuwait has attempted to mediate.
On June 10 QP said that it was conducting "business as usual" throughout all upstream, midstream and downstream operations, despite rising diplomatic tensions with its Gulf neighbours.
QP was prepared to take any "necessary decisions and measures, should the need arise, to ensure that it honoured commitments to customers and partners", a statement said. Al-Kaabi said: “On behalf of Qatar Petroleum and our operating ventures, I would like to express our gratitude to all our valued customers, and in particular our LNG customers, and would like to assure them of our determined efforts to continue uninterrupted supplies as the world’s most reliable LNG supplier.”
The US ambassador, Shell Smith, gave notice of her plan to leave Qatar this month, although this was according to the State Department a decision taken early this year. She had served the standard three-year term of office. The events this month saw the US president and the State Department take different approaches, Donald Trump supporting Saudi Arabia but officials urging the sides to talk.
William Powell