Qatargas, United Arab Shipping Company, Shell to Promote LNG as Marine Fuel in Middle East Region

Qatargas, United Arab Shipping Company (UASC) 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 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.

This is second such agreement signed by Qatargas and Shell. In February, the two companies signed a similar memorandum with the Maersk Group.

Through the joint relationship the partners will explore the development of new markets for LNG to be used as propulsion fuel within the Middle East region and the conversion of UASC's existing vessels providing the opportunity to use a cleaner fuel, Qatargas said in a statement published Sunday.

The LNG will be supplied 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.