LNG project to boost North Sea bunker infrastructure

L-R: Michael Cobb (ExxonMobil), Andrew Scott (Babcock), Ian Lindsay (Babcock), Angus Campbell (BSM), Michael Morrison (Orkney), Gavin Barr (Orkney), Mark Gilks (Calor), Luca Volta (ExxonMobil). Picture: Colin Keldie L-R: Michael Cobb (ExxonMobil), Andrew Scott (Babcock), Ian Lindsay (Babcock), Angus Campbell (BSM), Michael Morrison (Orkney), Gavin Barr (Orkney), Mark Gilks (Calor), Luca Volta (ExxonMobil). Picture: Colin Keldie

A multilateral LNG project has been launched to provide customers in the north UK and North Sea with gas deliveries, including bunkering.

ExxonMobil, Babcock International Group, Bernhard Schulte Shipmanagement (BSM), Calor and Orkney Islands Council have signed memorandum of understanding to develop the infrastructure, storage and technical support needed to enable the supply of LNG fopr both marine and land-based applications.

Under the ‘Caledonia LNG# project, ExxonMobil will explore the potential for its global marine network to deliver LNG bunker fuel to customers in the region as well as providing technical support and expertise to enable safe bunkering operations. Babcock will provide its experience of storage, handling and distribution of LNG, while BSM would be responsible for supervising the building, management and operation of marine craft and related assets for the project. Calor will investigate opportunities to supply LNG to industrial and automotive sector customers and Orkney Islands Council would supply port services and security.

Luca Volta, LNG venture manager, ExxonMobil Marine Fuels, said “The MoU is a clear indicator that ExxonMobil, Babcock International Group, Bernhard Schulte Shipmanagement (BSM) and Calor are determined to leverage their history and expertise with LNG to work with Orkney Islands Council to maximise the possibilities for customers. We will also draw upon our extensive global marine network to provide our customers in northern UK and the North Sea with LNG bunker fuel.”

The parties noted that the recent decision by the IMO to implement a global 0.50% sulphur cap on ship emissions in 2020 is likely to increase demand for compliant low-sulphur fuel options, which could include LNG.

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