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‘Caledonia LNG’ Project to Progress North Sea LNG Bunkering

ExxonMobil, Babcock International Group, Bernhard Schulte Shipmanagement (BSM), Calor and Orkney Islands Council have signed a Memorandum of Understanding (MOU) to collaborate on a project to develop infrastructure, storage and technical support for liquefied natural gas (LNG) operations in the north of the UK and the North Sea.

The parties signed the MOU on 22 November, 2016.

The “Caledonia LNG” project will investigate opportunities to supply LNG for marine and land-based applications. This will include LNG bunkering for marine fuel use.

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 LNG bunkering operations. Babcock International Group will provide its experience of storage, handling and distribution of LNG, while BSM would be responsible for supervising the building, management and operation of the 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.

Exxon say that they will now draw upon their global marine network to provide their customers in northern UK and the North Sea with LNG bunker fuel.

The recent decision by the International Maritime Organisation (IMO) to implement a global 0.50% sulphur cap on vessel emissions in 2020 is likely to increase demand for compliant low-sulphur fuel options, such as LNG.

Image (from left to right):  Michael Cobb (ExxonMobil), Andrew Scott (Babcock), Ian Lindsay (Babcock), Angus Campbell (BSM), Michael Morrison (Orkney), Gavin Barr (Orkney), Mark Gilks (Calor) and Luca Volta (ExxonMobil). 

Image Credit: © Colin Keldie

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