Singapore set for LNG bunkering from 2017

Pavilion Gas and BG joint venture with Keppel emerge as successful bidders in licensing round.

Singapore is set to offer LNG bunkering from 2017 after the award of two supplier licences by Maritime Port Authority (MPA).

Singapore’s Pavilion Gas Pte and a joint proposal of BG Group and Keppel Offshore & Marine were named as the successful bidders.

The MPA said its Request for Proposal (RFP) attracted 12 bids when it closed on 30 September 2015 with the two winners said to have best met criteria set up in the RFP.

MPA said it will work with the two licence holders to develop the necessary infrastructure for them to begin supplying LNG bunker to vessels in the Port of Singapore by early 2017.

“We are excited about the prospect of supplying LNG as a fuel for ships in Singapore and the on-going development of Singapore as a leading hub for LNG in Asia,” said BG Group’s Steve Hill, Executive Vice President, Global Energy Marketing and Shipping.

 MPA said it is also working with stakeholders to develop LNG bunkering standards and procedures at both the national and international levels.

MPA has also signed MOUs with the Port of Rotterdam, Antwerp Port Authority, and Port of Zeebrugge, to harmonise LNG bunkering standards and procedures.

In addition, MPA said it is funding up to SGD12m ($8.4m) for the building of six LNG-fuelled vessels. To date, MPA has received a total of five applications which are being evaluated. It expects to announce the successful applicants by March 2016.

MPA said it will also be engaging towage service providers in Singapore to consider switching to LNG as a fuel when they commission new tug boats.

“With growing international regulatory requirements and stricter standards for emissions, LNG is likely to be part of the fuel mix for global shipping as it becomes more cost-competitive and supply chain and infrastructures are developed,” said MPA chief executive Andrew Tan.