Shell and Qatar Petroleum (QP) today agreed to form a joint venture aimed at developing LNG bunkering infrastructure around the world.
The partnership between QP subsidiary Wave LNG Solutions and Shell Gas & Power Developments follows a framework agreement that the two companies signed last year and expands on two preliminary agreements that Shell and Qatargas signed with industry partners in 2016 to explore LNG bunkering opportunities in the Middle East.
Under the terms of the new deal, QP and Shell will invest in LNG marine fuelling, bunkering vessels and other infrastructure across Europe, Asia-Pacific and North America, the companies said. These locations will leverage the existing QP and Shell supply position and complement Shell's marine LNG bunkering locations.
Most shipping companies still use heavy fuel oil or marine gasoil as bunker fuel, but increasing numbers of shipowners and operators are turning to LNG in response to tighter sulphur and emissions regulations due to come into force next year. The International Maritime Organization will introduce a global 0.5pc sulphur cap from 2020.
