Gibraltar Government, LR Sign Agreement to Work on LNG Bunkering Facility

The Gibraltar government has signed an agreement with Lloyd's Register on Tuesday

Her Majesty's Government of Gibraltar (HMGoG) has signed an agreement with Lloyd's Register to lay the groundwork for a new dual-fuel power station and liquefied natural gas (LNG) storage and bunkering facility at North Mole, the government announced Tuesday in an emailed statement.

The two will work together to begin "scoping requirements" for an independent safety report that is expected to complement an earlier review carried out by the British Government Health and Safety Executive (HSE).

Both LR and HMGoG said they agreed that LNG bunkering was important to the port's commercial development and to the cruise industry.

Chief Minister Fabian Picardo also assured that the Gibraltar government was committed to ensuring the safety of LNG infrastructure. 

"I am very happy to start this collaboration with Lloyd's Register which will demonstrate that an independent assessment of the proposals being made to Gibraltar for LNG storage and bunkering will be entirely safe," said Picardo.

"The Government's, the Port's and the GEA's highly competent technical team has already met with Lloyd's LNG experts who have carried out similar studies on other bunkering ports throughout the world."

LR's Chairman, Thomas Thune Andersen, commented: "The overall health benefits of reductions in local air emissions that are hazardous to health are important ambitions. The replacement of heavy fuel oil or distillate fuelled generators by gas generating capacity could provide a significant improvement in local air quality."

The past few months has seen much back-and-forth between the government and the opposing Gibraltar Social Democrat (GSD) party, who have challenged the viability and safety of current LNG plans numerous times. 

However, the government has maintained that the GSD are being "alarmist."

Earlier this month Ship & Bunker reported that the GSD released a separate privately-commissioned Lloyd's Register report which reportedly warned of "potentially intolerable risks" associated with the construction of LNG infrastructure.