FueLNG, a joint venture between Keppel Offshore & Marine (Keppel O&M) and Shell Eastern Petroleum, has placed an order at Keppel O&M for the construction of a LNG bunkering vessel.
The vessel is to be South East Asia’s first LNG bunkering vessel. Total value of the order is around S$50m ($37.5m) and FueLNG will receive a grant of up to S$3m as part of the Maritime and Port Authority of Singapore’s (MPA) LNG Bunkering Pilot Programme.
Scheduled for completion in the third quarter of 2020, the dual-fuel LNG bunkering vessel will have a capacity of 7,500 cu m.
“We are pleased that FueLNG, Keppel and Shell are taking the lead in growing the LNG bunkering infrastructure in Singapore. As the world’s largest bunkering port, it is important that we support the development of LNG bunkering in our port to cater to future demand for LNG as a marine fuel,” said Andrew Tan, CEO of MPA.
“Shell’s global expertise in LNG bunkering will support this growth in Singapore. This vessel enables FueLNG to provide ship-to-ship bunkering services to customers for cost-effective, cleaner fuel alternatives. The customised design enables FueLNG to operate efficiently and safely within the port of Singapore and we look forward to continuing to work with industry stakeholders to enhance and provide LNG bunkering infrastructure in Singapore,” commented Lauran Wetemans, director, FueLNG, and general manager, Shell Downstream LNG.
As emissions standards tighten globally, the industry is seeing increasing demand for LNG-fuelled ships, with 123 LNG-fuelled ships in operation and 150 on order as of early 2018.