Two liquefied natural gas (LNG) bunkering vessels will be starting operations at Singapore, the world’s largest bunkering port, in 2020, says the Maritime and Port Authority of Singapore (MPA).
The port authority Monday awarded SGD $6 million (USD 4.49 million) to FueLNG Pte Ltd and Pavilion Gas Pte Ltd for the construction of two newbuildings capable to ship-to-ship LNG bunkering.
Keppel and Shell Eastern Petroleum JV firm FueLNG Pte Ltd and Pavilion Energy subsidiary Pavilion Gas Pte Ltd will each receive a co-funding grant of up to S$3 million for their respective LNG bunkering vessel.
The vessels are slated for delivery in 2020, and will be amongst the first of their kind in Asia.
Andrew Tan, Chief Executive of MPA, believes the development to be a significant step towards cementing Singapore’s position as a leading LNG bunkering hub in the Far East, catering to large ocean-going LNG-fuelled vessels.
“LNG is a viable marine fuel solution to meet global environmental regulations such as the International Maritime Organization’s (IMO) 0.5% global sulphur cap from 1 January 2020,” he says.
“As the world’s largest bunkering hub, we are pleased to support the building of the first two LNG bunker supply vessels for the Port of Singapore.
“We look forward to the successful applicants contributing to the growth of ship-to-ship LNG bunkering in the Port of Singapore.”
The MPA grant will boost FueLNG’s plans to provide ship-to-ship bunkering of LNG in addition to truck-to-ship LNG bunkering for ship owners, notes Chris Ong, Chairman of FueLNG.
“Leveraging expertise from both Keppel and Shell, FueLNG aims to provide safe, cost-efficient and reliable solutions in LNG bunkering for global customers who pass through the Port of Singapore, which will encourage the adoption of LNG as a marine fuel,” he says.
Frédéric Barnaud, Group Chief Executive Officer of Pavilion Energy, is pleased to receive the MPA grant for the construction of an LNG bunker vessel.
“Pavilion Gas’ commitment to build its LNG bunkering business and infrastructure in Singapore and globally is a strong signal to shipowners and the bunkering community that LNG is a credible solution to achieve IMO’s 2020 ruling,” he says.
Photo credit: Maritime and Port Authority of Singapore
Publication date: 4 June, 2018
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