Tue 28 Jul 2015, 10:38 GMT

Shell offering 'temporary' LNG bunkering service in UK


Petrochemicals manufacturer says it will have its own LNG bunkering facility in Q4.



Saudi Basic Industries Corporation (SABIC) - one of the world's largest petrochemicals manufacturers, headquartered in Riyadh, Saudi Arabia - says that its LNG bunkering arrangement with Shell in Teesport, UK, is a "temporary" solution while it develops its own bunkering facility in Teesside.

In May, Shell bunkered the SABIC-chartered vessels Coral Star and Coral Sticho in Teesport. It was the first LNG bunkering operation for Shell in the UK.

Commenting on its arrangement with Shell in a statement, SABIC said yesterday (July 27): "It is a temporary LNG bunkering facility supporting SABIC, as we are developing for our own jetty at PD Ports in parallel. The permanent solution by SABIC will 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. 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," SABIC added.

The two LNG-fuelled vessels, Coral Star and Coral Sticho, have been chartered from Dutch gas tanker operator Anthony Veder, and operate between Teesport and ports on the European continent.

The vessels were delivered to SABIC in late 2014. They carry liquefied ethylene gas (LEG) from SABIC's Wilton facility on Teesside to manufacturing plants in North-West Europe and Scandinavia. The chemicals are used to make a range of everyday items such as food packaging, PVC, detergents and adhesives.

With the establishment of an LNG bunkering solution in Teesport, the vessels are to run solely on LNG, creating a reduction in emissions. According to Shell, its LNG contains virtually no sulphur or particulate matter, and significantly reduces NOx emissions versus heavy fuel oil.

Jan Valkier, CEO of ship owner Anthony Veder commented: "This first LNG bunkering allows for a continuous safe and reliable bunkering operation for the Coral Star and Coral Sticho. We are proud that these vessels are world's first LNG-fuelled LEG carriers. A major achievement for LNG as a marine fuel and our company. We highly appreciate the close collaboration between well-respected partners involved that made this success possible."

Arjan Stavast, Shell LNG business development manager, explained: "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."

"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," remarked Paul Ruigt, Category Manager for Shipping & Barging at SABIC Supply Chain Chemicals Europe.

"The establishment of the LNG bunkering solution enables us to run the LEG carriers fully on LNG and supports us to meet 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," Ruigt added.

Image: Teesport.


American Bureau of Shipping (ABS) logo. ABS introduces nuclear-ready notation for marine and offshore assets  

The classification society has released what it describes as an industry-first notation to support future nuclear conversion of vessels and offshore assets.

AiP handover ceremony for NEXTGEN Energy Hub (NGEH) design. ABS grants approval in principle for Seatrium’s NEXTGEN Energy Hub design  

The hub concept integrates ammonia bunkering, power generation and electric vessel charging in a single unit.

Jumbo Maritime crew aboard vessel. Jumbo orders two methanol-ready L-Class heavy lift vessels from Dajin Heavy Industry  

Dutch heavy lift specialist Jumbo signs newbuilding contract for two 25,000-dwt vessels.

China flag. Zhoushan completes first bonded bunker operation at Majishan port area  

The operation marks full fuel supply coverage across all general cargo terminals in Zhoushan's port system.

US dollar banknotes. Port of Long Beach launches $1m methanol bunkering challenge for oceangoing vessels  

A $1m prize aims to kick-start commercial methanol bunkering at one of North America's busiest ports.

Core Power, Athlos Energy, Deon Policy Institute and ABS logos. Greece floating nuclear study finds no fundamental barriers to implementation  

A PESTLE assessment of floating nuclear power plants in Greece identifies framework gaps, not feasibility barriers.

Northern Pathliner alongside Bergen LNG vessel. Molgas completes LNG cool-down and bunkering for Northern Pathliner at Northern Lights terminal in Norway  

Operation carried out at Øygarden facility, with K Line and Integr8 Fuels in the supply chain.

Rendering of a G2 Ocean OHGC vessel. G2 Ocean expands fleet with six future-fuel ready gantry crane vessels  

Open hatch specialist adds vessels and jet sail technology as part of a broad fleet renewal programme.

CMA CGM Adventure vessel at Port of Mombasa. LNG-powered CMA CGM Adventure makes first call at the Port of Mombasa  

Kenya Ports Authority receives its first large LNG-fuelled container vessel.

Liam Blackmore, Lloyd's Register. Maritime trio shapes IMO safety guidelines for ammonia as marine fuel  

Real-world operational experience feeds directly into new IMO ammonia fuel safety framework.