EMEA News
LNG Bunker Deal Inked by UASC, Qatargas, Shell
Qatargas, United Arab Shipping Company (UASC), and Royal Dutch Shell Plc (Shell) Sunday announced that they have signed a Memorandum of Understanding (MOU) to investigate the viability of the development of liquefied natural gas (LNG) bunkers in the Middle East region and conversion of United Arab Shipping Company Line's (UASC Line's) existing vessels to LNG propulsion.
"LNG as a marine fuel is gaining momentum in the deep sea transportation industry as the best alternative to meeting increasing environmental standards," said Saad Sherida Al-Kaabi, Chairman of Qatargas' Board of Directors.
The MOU is said to set out that LNG for the project will be supplied from Qatargas 4, a joint venture between Qatar Petroleum and Shell Gas B.V., with the signing of the agreement said to strengthen the companies' commitment to innovation and the development of new market opportunities.
Commenting on the deal and its place within a larger market context, Jorn Hinge, CEO for UASC, said: "we have seen an increased demand on green shipping from our customers in recent years and a focus on how the eco-efficient technologies on our new vessels can help them achieve their own sustainability strategy."
"Stricter environmental regulations are also expected, something we are well prepared for. Many organizations have already included stricter requirements in their tenders and evaluation criteria, meaning only those carriers with optimum environmental credentials will qualify or be shortlisted."
In May, DNV GL announced that UASC's newest ship, the 18,800 TEU containership Barzan, is the first of 17 newbuilds ordered by the company to receive classification society DNV GL's new GAS READY notation.
