Qatargas, United Arab Shipping Company (UASC) and Shell signed a Memorandum of Understanding (MOU) to explore the development of liquefied natural gas (LNG) as a marine fuel in the Middle East region.
Through the joint relationship the partners plan to 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.
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 United Arab Shipping Company Line potentially using the fuel for its recently built container ships.
“LNG as a marine fuel is gaining momentum in the deep sea transportation industry as the best alternative to meeting increasing environmental standards,” Saad Sherida Al-Kaabi, Chairman of Qatargas Board of Directors, said, adding that the “agreement between Qatargas, Shell and United Arab Shipping Company demonstrates our commitment to building LNG fueled vessels and the supply system to support it.”
This is the second agreement signed by Qatargas and Shell for the development of LNG as marine fuel in the region. The first MOU was inked two months ago with the Maersk Group.