Qatargas, Shell and UASC Continue to Lead the Way in the Development of LNG as Marine Fuel

Doha, April 17 (QNA) - Qatargas, United Arab Shipping Company and Shell signed a Memorandum of Understanding (MOU) to explore the development of LNG as a marine fuel in the Middle East region. This is the second such agreement signed by Qatargas and Shell in as many months and establishes another core partnership within the shipping industry. The MOU was signed at a ceremony attended by Qatargas Chief Executive Officer, HE Sheikh 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. 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 UASCs existing vessels providing the opportunity to use a cleaner fuel. 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 B.V., with United Arab Shipping Company Line potentially using the fuel for its recently built container ships. In Comments on this important milestone, Eng. Saad Sherida Al-Kaabi, Chairman of Qatargas Board of Directors, said: "LNG as a marine fuel is gaining momentum in the deep sea transportation industry as the best alternative to meeting increasing environmental standards." Al-Kaabi added that "this agreement between Qatargas, Shell and United Arab Shipping Company demonstrates our commitment to building LNG fueled vessels and the supply system to support it. Further to our commitment to pioneering new LNG applications and in preparation to fulfilling any upcoming regulatory requirements, we believe that this direction by Qatargas and its industry partners is the right path to support a cleaner environment". Qatargas Chief Executive Officer, HE Khalid Bin Khalifa Al-Thani, said: "Qatargas is pleased to be a partner with Shell and UASC in this second MOU for LNG as a Marine Fuel. LNG as a transportation fuel is growing and we with our partners believe we have the people, tools and resources to make it a reality. Through this effort we know we can make a significant impact on how the shipping industry evolves over the next generation. We see this as our opportunity to support the international efforts to reduce greenhouse emissions and create a cleaner environment for future generations. For his part, United Arab Shipping Company Group Chief Executive Officer, Jorn Hinge, said: "UASC, with Shell and Qatar Gas, is fully committed to environmental sustainability and developing LNG as a marine fuel. As part of our newbuilding program, UASC has received thirteen of seventeen new vessels over the past sixteen months. These ships are the greenest in the world and uniquely LNG-ready, meaning once the infrastructure is ready globally, with a quick and cost-efficient retrofit, they can run on LNG and become even more eco- friendly". Managing Director and Chairman of Qatar Shell Companies, Michiel Kool, stressed Shell's pleasure to work in partnership with Qatargas and United Arab Shipping Company 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 signing of this agreement reinforces the commitment and innovative approach that is being undertaken by industry leaders Qatargas, Shell and United Arab Shipping Company to identify and develop new market opportunities through collaboration and strategic partnership. Qatargas, established in 1984, pioneered the Liquefied Natural Gas (LNG) industry in Qatar and today is the largest producer of LNG in the world with an annual production capacity of 42 million tonnes per annum (MTPA) from its world-class facilities in Ras Laffan Industrial City, Qatar. Shell is the largest international investor in Qatar having invested USD 21 billion over the past decade. Qatar Petroleum and Shell have jointly delivered two of the largest energy projects in the world in Ras Laffan Industrial City. Pearl Gas to Liquids (GTL) is the world's largest GTL plant and cements Qatar's position as the GTL capital of the world. At an investment of up to USD19 billion it represents the largest single investment in the Shell Groups global portfolio. The Qatargas 4 Liquefied Natural Gas project (QP (70%) and Shell (30%) combines Shells global leadership in LNG with Qatars position as the world's largest LNG supplier. Shell has established a world-class research and development facility and a learning centre, the Qatar Shell Research & Technology Centre, at the Qatar Science & Technology Park. United Arab Shipping Company (UASC) is a global shipping company based in the Middle East. Founded in 1976, UASC has 185 offices around the world. The company is the largest container shipping line in the Middle East region and adjacent markets, covering 240 ports and destinations worldwide. UASC offers containerized cargo transportation, temperature controlled (reefer) and out of gauge cargo amongst other value added services to a diversified global client-base. (QNA)