DOHA: 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.

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 Khalid bin Khalifa Al Thani UASC Chief Executive Officer Jorn Hinge and Managing Director and Chairman of Qatar Shell Companies Michiel Kool.

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. 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.

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.”

Khalid bin Khalifa Al Thani Qatargas CEO 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.

Jorn Hinge UASC Group CEO 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 programme UASC has received 13 of 17 new vessels over the past sixteen months; seven 15000 TEU vessels and six 18800 TEU ultra-large container vessels. We are due to take delivery of a further four 15000 TEU vessels in the coming 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”.

Michiel Kool MD and Chairman of Qatar Shell Companies said: “Shell is delighted to work in partnership with Qatargas and UASC 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. Shell has been a pioneer in this area with our investments in LNG for transport infrastructure in Europe and the US and we look forward to now deploying our expertise to create a regional hub in the Middle East in collaboration with two very strong global partners based in the region Qatargas and United Arab Shipping Company”.The Peninsula