New U.K. LNG Bunkering Project Underway

Orkney ferry
Orkney Islands ferry.

By MarEx 2016-11-23 18:09:22

ExxonMobil, Babcock International Group, Bernhard Schulte Shipmanagement (BSM), Calor and Orkney Islands Council have signed an agreement to collaborate in the Caledonia LNG project that aims to develop LNG infrastructure. 

The project will include the storage and technical support needed to enable safe LNG operations for customers in the north of the U.K. and North Sea, including LNG bunkering.

ExxonMobil will explore the potential for its global marine network to deliver LNG bunker fuel to the region. 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.

The recent decision by the IMO to implement a global 0.50 percent sulfur cap on vessel emissions in 2020 is likely to increase demand for compliant low-sulfur fuel options, including LNG.

At present, LNG bunkering in Europe is available at 13 ports such as Rotterdam and Zeebrugge. The E.U. is planning to increase the number to 139 by 2025.

As of November, there are 88 LNG-fuelled ships in operation and 98 ships on order. There are also 70 LNG-ready ships in operation or on order. By 2020, DNV GL expects between 400 and 600 LNG-fuelled vessels to be in operation worldwide.