U.S.-based energy giant ExxonMobil, signed an agreement with Babcock International Group, Bernhard Schulte Shipmanagement, Calor and Orkney Islands Council to collaborate in the Caledonia LNG project.

The aim is to develop the infrastructure, storage and technical support needed to enable LNG operations for customers in the north of the UK and North Sea, including bunkering, a joint statement reads.

A memorandum of understanding was signed on November 22 to investigate opportunities to supply LNG for marine and land-based applications.

ExxonMobil will explore the potential for its global marine network to deliver LNG bunker fuel to customers in the region as well as providing technical support and expertise to enable LNG bunkering operations, the statement reads.

Babcock International Group agreed to 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.

For its part, Calor will investigate opportunities to supply LNG to industrial and automotive sector customers while the Orkney Islands Council would supply port services and security.

The recent decision by the International Maritime Organisation (IMO) to implement a global 0.50 percent sulphur cap on vessel emissions in 2020 is likely to increase demand for compliant low-sulphur fuel options, which could include LNG, the statement reads.