COPENHAGEN, Feb 22 (Reuters) - Qatar and Royal Dutch Shell have agreed to develop liquefied natural gas (LNG) as amarine fuel for use by the world's largest container shippingcompany, A.P. Moller-Maersk, Qatargas said in astatement on Monday.
Qatargas, the world's largest LNG producer, said the threecompanies signed a memorandum of understanding which seesQatargas 4, a joint venture between Qatar Petroleum and Shell,producing the fuel for use by Maersk Line.
Most shipping companies currently use heavy fuel oil, orbunker fuel, to propel their vessels although LNG as marine fuelhas been used by some ships in the past decade.
DNV GL, an international energy and shipping certificationagency, says while most of the industry will continue to useheavy fuel oil for now, LNG is being used more, in part becauseit more easily meets current and proposed emission rules.
In a 2015 report, DNV GL said 63 LNG-fuelled vessels werealready operating globally with another 76 ships being builtthat would use the new fuel. In contrast, Maersk has just under600 ships operating, including some of the biggest in the world.
"This cooperation between Qatargas, Maersk Group and Shellrepresents an important step in developing LNG as a viable fuelfor maritime transportation," Maersk's chief executive, NilsSmedegaard Andersen, said in a statement issued by Qatargas.
"The possible use of LNG as fuel for ships presents anopportunity to reduce both SOx (sulphur oxides) emissions and inreducing the transport sector's CO2 (carbon dioxide) footprint." (Reporting by Sabina Zawadzki; Editing by Greg Mahlich)