Shell Starts UK LNG Bunker Supply Operation

Shell will be supplying LNG to SABIC-chartered vessels in Teesport, UK until SABIC completes its own facility later this year.

Saudi Basic Industries Corporation (SABIC) Monday announced that Royal Dutch Shell Plc (Shell) will be supplying liquid natural gas (LNG) to SABIC-chartered vessels in Teesport, UK, via a temporary LNG bunkering facility.

"We are very proud of achieving this milestone for LNG bunkering. The intensive collaboration between Shell, SABIC, Anthony Veder and contractors Schenk, Unitrove, PD Ports and Liqal has enabled this success," said Arjan Stavast, Shell LNG Business Development Manager.

In May, Shell is said to have completed its first UK LNG bunkering activities when it bunkered the SABIC-chartered vessels Coral Star and Coral Sticho, chartered vessels from Anthony Veder that operate between Teesport and ports on the European continent.

SABIC says it is in the process of developing their own jetty at PD Ports, an intended permanent LNG supply solution for SABIC that is set to be completed later this year.

"SABIC is pleased with Shell's temporary bunkering facility in the UK, as our vessels now no longer need to bunker the fuel in Zeebrugge. This will certainly increase efficiency and reduce costs," said SABIC.

"Simultaneously, we are preparing our own SABIC bunkering facility in Teesside. The solution with Shell is helping us to bridge the time until we have our own LNG bunkering facility in Q4 this year."

Paul Ruigt, Category Manager for Shipping & Barging at SABIC Supply Chain Chemicals Europe, commenting on the LNG supply deal, said "as a responsible global company, SABIC is committed to providing high-quality products to our customers, while doing all we reasonably can in order to reduce the environmental impact of our operations."

"The establishment of the LNG bunkering solution enables us to run the LEG carriers fully on LNG and supports us in meeting our targets on emission reduction.

"The bunkering solution is part of a bigger project to realize a breakthrough in the application of LNG for short sea shipping by starting and developing a dedicated LNG demand and supply chain in the United Kingdom. This pioneering project is co-financed by the European Union."

In March, it was reported that Shell launched the Gulf of Mexico's first LNG offshore supply vessel.