New alliance starts LNG project

LNG, exxonmobil
Photo: Colin Keldie
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ExxonMobil, Babcock International Group, B[ds_preview]ernhard Schulte Shipmanagement (BSM), Calor and Orkney Islands Council have signed an agreement to collaborate in the »Caledonia LNG« project.

The aim is to develop the infrastructure, storage and technical support needed to enable safe liquefied natural gas (LNG) operations for customers in the north of the UK and North Sea, including bunkering.

The parties signed a Memorandum of Understanding (MOU) to investigate opportunities to supply LNG for marine and land-based applications. 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 Bernhard Schulte Shipmanagement (BSM) would be responsible for supervising the building, management and operation of the marine craft and related assets for the project.

»We will draw upon our extensive global marine network to provide our customers in northern UK
and the North Sea with LNG bunker fuel«
Luca Volta, LNG Venture Manager at ExxonMobil Marine Fuels

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, which could include LNG.