ExxonMobil Sign LNG Bunkering MoU for Northern UK and North Sea

Exxon Mobil, Babcock International, Bernhard Schulte Shipmanagement, Calor, and Orkney Islands Council will work together on the LNG project.

ExxonMobil Corp. (ExxonMobil), Babcock International Group (Babcock), Bernhard Schulte Shipmanagement (BSM), Calor, and Orkney Islands Council today announced that they have signed an Memorandum of Understanding (MoU) to work together on the Caledonia liquefied natural gas (LNG) project, which will see the development of bunkering in Northern UK and the North Sea.

Specifically, the MoU will investigate opportunities to supply LNG for marine and land-based applications with the intention of developing required infrastructure, storage and technical support for safe and effective LNG operations.

"The Memorandum of Understanding 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," said Luca Volta, LNG Venture Manager at ExxonMobil Marine Fuels.

"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."

Under the cooperation, ExxonMobil is set to explore the potential to leverage its network to supply LNG bunkers to customers within the region, and will provide technical support and expertise for LNG bunkering operations.

Babcock is said to be set to support the project through its expertise in storage, handling, and distribution of LNG, while BSM will be responsible ensuring the building, management, and operation of the marine craft and related assets is carried out appropriately.

Meanwhile, Calor is tasked with investigating opportunities for LNG supply to industrial and automotive sector customers, and Orkney Islands Council will provide port services and security.

Yesterday, Ship & Bunker reported that Michael Schaap, commercial director marine Titan LNG has said that shipowners who wait to act on preparing to use LNG bunkers risk being put at a competitive disadvantage in the future.