Keppel-BG, Pavilion for Singapore LNG

January 29, 2016 in Companies, LNG, Marine, Milestones by Rich Piellisch  |  No Comments

First LNG Bunkering Is Expected to Take Place Next Year

A new partnership of Keppel Offshore & Marine and BG Group, and Pavilion Energy have won the first licenses to supply liquefied natural gas as a bunker fuel in Singapore, says MPA, the Maritime and Port Authority of Singapore. The first LNG bunkering in Singapore is expected to take place next year.

This item was initially posted on January 27

The BG Group says it 'has to date delivered 72 cargoes into Singapore from its global LNG portfolio.'

The BG Group says it ‘has to date delivered 72 cargoes into Singapore from its global LNG portfolio.’

MPA, noting that “Singapore is the largest and most important bunkering port in the world,” said it 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,” MPA chief executive Andrew Tan said in the license announcement.

‘One of the World’s Most Important Strategic Ports’

“With the granting of the license, Keppel O&M and BG Group will work on forming a 50-50 joint venture to deliver an end-to-end bunkering solution using LNG sourced from BG Group’s diversified LNG portfolio and leveraging Keppel O&M’s expertise in LNG vessel servicing,” states and announcement by Keppel.

MPA_Logo“Singapore is one of the world’s most important strategic ports and we are excited about the prospect of supplying LNG as a fuel for ships in this key market, with first delivery expected in 2017,” BG Group global energy marketing and shipping executive VP Steve Hill said in a release.

“LNG produces considerably lower emissions than conventional marine fuel and can significantly reduce a vessel’s environmental impact,” Hill said. “We look forward to working with Keppel O&M on the safe and reliable supply of this cleaner fuel source and the ongoing development of Singapore as a leading hub for LNG in Asia.”

72 BG Cargoes into Singapore to Date

Also according to the Wednesday announcement, the new venture builds on BG Group’s existing role as the exclusive aggregator for Singapore’s first 3 million tons per annum of LNG demand. Following the start of commercial operations at Singapore LNG’s terminal in May 2013, BG Group “has to date delivered 72 cargoes into Singapore from its global LNG portfolio, helping the country to safely diversify its energy sources and increase security of supply.”

“The move into LNG bunkering is in line with Keppel’s strategy to provide solutions for the global LNG market,” said Keppel O&M CEO Chow Yew Yuen. “As the exclusive gas aggregator for Singapore, BG Group has the experience of importing LNG into Singapore where they already have a ready supply on Jurong Island.

Keppel Is a Major LNG Player

“Together with Keppel’s years of experience and expertise in servicing vessels including gas carriers, we will be able to provide strong support to MPA in its goal to develop Singapore into a key LNG bunkering hub in Asia. As the shipping industry’s demand for green solutions continues to rise, we will also be able to help meet the needs for sustainable shipping with our growing LNG solutions, such as tug designs with dual-fuel diesel LNG engines and the retrofitting of vessel engines to run on LNG.”

Keppel O&M has extensive experience with LNG including completion of the world’s first FSRU/floating storage and regasification unit in 2008. The firm set up a new design and technology arm last year, and has been designated to convert Tote Maritime’s Midnight Sun container ship to LNG-diesel dual fuel operation (HHP Insight, October 21).

Singaporeshipsmany

‘Singapore,’ says MPA, ‘is the largest and most important bunkering port in the world.’

Keppel O&M has also developed a range of designs for LNG vessels including barges, carriers, and dual-fuel tugs that can run on diesel and LNG.

Singapore-based Pavilion Energy says its vision “is to be established as the preferred regional LNG player.”

Standards Harmonization

“We will work closely with MPA and our partners to develop and test safety procedures and build relevant infrastructure to make LNG bunkering a reality in Singapore,” Seah Moon Ming says in the MPA announcement.

MPA said too that it is “working with stakeholders to develop LNG bunkering standards and procedures at both the national and international levels.” The agency has MOUs with the Port of Rotterdam, Antwerp Port Authority, and Port of Zeebrugge, to harmonize LNG bunkering standards and procedures (HHPi, November 14, 2013).

LNG-Powered Singapore Tugboats?

MPA is also providing funding of up to S$12 million ($8.4 million U.S. at current rates) for the building of six LNG-fueled vessels.

“To date,” the agency said this week, “MPA has received a total of five applications which are being evaluated. MPA 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 tug boats.”

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Source: Keppel Offshore & Marine with Fleets & Fuels follow-up

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