MOSCOW (MRC) -- QatarEnergy and Royal Dutch Shell have agreed to join forces to pursue investments in blue and green hydrogen projects in the UK that might be able to reduce carbon emissions in industrial clusters and transport sectors, with a focus on the London metropolitan area, reported S&P Global with reference to the companies' statement on Oct. 19.
This is the first hydrogen agreement between both companies, and will target "integrated and scalable opportunities," the companies said.
The agreement was signed on the sidelines of the UK Global Investment Summit, they said. The UK, which released its hydrogen strategy Aug. 17, supports both renewable '"green" production by electrolysis of water as well as fossil fuel-derived "blue" production with carbon capture and storage.
The QatarEnergy, Shell investments may include low carbon fuels and technologies, they said.
Middle East oil and gas companies are in a race with Australian peers to develop blue hydrogen, developed from natural gas, while oil majors such as Shell are bringing in global technological expertise to lower hydrogen costs.
QatarEnergy is the world's largest LNG exporter.
As MRC wrote previously, in September 2021, Japan's Mitsubishi signed a memorandum of understanding with Shell to consider producing around 165,000 mt/year of blue hydrogen near Edmonton, Canada, in the late 2020s with an eye to convert it into ammonia for exports to Japan.
We remind that Royal Dutch Shell plans to reduce its refining and chemicals portfolio by more than half, it said in July 2020 without giving a precise timeframe. The move is part of the Anglo-Dutch company's plan to shrink its oil and gas business and expand its renewables and power division to reduce greenhouse gas emissions sharply by 2050.
Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,638,370 tonnes in the first eight months of 2021, up by 10% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 989,570 tonnes in the first eight months of 2021, up by 30% year on year. Deliveries of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas shipments of injection moulding PP random copolymers decreased significantly.
Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.