The Maritime and Port Authority of Singapore (MPA) has awarded two LNG bunker supplier licenses to Pavilion Gas and a joint proposal of Keppel Offshore and Marine and BG Group (BG Group – Keppel).
In response to MPA's request for proposal (RFP), the two companies' proposals have emerged as the proposals that best met criteria set up in the RFP. The RFP attracted 12 bids when it closed on September 30, 2015.
MPA will work with the two license holders to develop the necessary infrastructure for them to begin supplying LNG bunker to vessels in the Port of Singapore by early 2017.
"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 Mr Andrew Tan, Chief Executive of MPA.
"As the world's largest bunkering hub, MPA is pleased to award the first two LNG bunker supplier licences to Pavilion Gas and BG Group – Keppel. This is the first step in Singapore's efforts to become LNG bunker ready. We are also keen to work with other major ports and the shipping community to promote LNG bunkering as an alternative marine fuel."
MPA 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 is funding up to S$12 million (US$8.5 million) for the building of six LNG-fuelled vessels. To date, MPA has received a total of five applications that are being evaluated and expects to announce the successful applicants by March 2016.
MPA will also be engaging towage service providers in Singapore to consider switching to LNG as a fuel when they commission new tugboats.
"We will leverage our years of experience and expertise in providing LNG solutions including gas carrier servicing to support MPA in its goal to develop Singapore into a key LNG bunkering hub in Asia." Commented Chow Yew Yuen, Chief Executive Officer, Keppel Offshore and Marine.